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A Beta-Logistic Model for the Analysis of Sequential Labor Force Participation by Married Women

  • James J. Heckman
  • Robert J. Willis

In this paper, we discuss statistical problems that arise in studying sequences of quantal responses (e.g., labor force participation) in panel data on heterogeneous populations (i.e., populations in which there is unobserved variation in response probabilities). Assuming that response probabilities are governed by a beta distribution, we derive a generalization of the cross-section logit model to enable it to deal with sequences of discrete events in panel data. This model is applied to panel data on labor force participation of married women. One of our findings is that the distribution of participation probabilities is U-shaped, indicating that most women have participation probabilities near zero or one.

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File URL: http://www.nber.org/papers/w0112.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 0112.

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Date of creation: Nov 1975
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Publication status: published as Heckman, James J. and Robert J. Willis. "A Betalogistic Model for the Analysis of Sequential Labor Force Participation by Married Women." Journal of Political Economy, Vol. 85, No. 1 (1977), pp. 27-58.
Handle: RePEc:nbr:nberwo:0112
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  1. Ben-Porath, Yoram, 1973. "Labor-Force Participation Rates and the Supply of Labor," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 697-704, May-June.
  2. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, vol. 42(4), pages 679-94, July.
  3. James J. Heckman & Robert J. Willis, 1974. "Estimation of a Stochastic Model of Reproduction: An Econometric Approach," NBER Working Papers 0034, National Bureau of Economic Research, Inc.
  4. Gilbert Ghez & Gary S. Becker, 1975. "The Allocation of Time and Goods over the Life Cycle," NBER Books, National Bureau of Economic Research, Inc, number ghez75-1, June.
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