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The participation of couples in the labor market: an econometric analysis

Author

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  • DUGUET Emmanuel

    (EPEE - University of Evry)

  • SIMONNET Veronique

    (TEAM - University of Paris I)

Abstract

This paper examines the interactions between household members’ utilities when deciding whether or not to join the labor market. Using asymptotic least squares, we analyze a sample of 5425 couples living in France in 1997. By comparing the results obtained with more standard methods, we find that the man’s participation equation is the most affected by the introduction of simultaneous decision making in the couple. The woman’s decision to participate has a positive and significant influence on their spouse’s decision to work, as do the number of children and the birth of a new child. The fact that the presence of children increases the participation of men and reduces the participation of women suggests that the added-worker effect should be interpreted more as a demographic phenomenon than as a consequence of unemployment.

Suggested Citation

  • DUGUET Emmanuel & SIMONNET Veronique, 2004. "The participation of couples in the labor market: an econometric analysis," Labor and Demography 0411005, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpla:0411005
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/lab/papers/0411/0411005.pdf
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    5. Stéfan Lollivier, 2001. "Les choix d'activité des femmes en couple : une approche longitudinale," Économie et Statistique, Programme National Persée, vol. 349(1), pages 125-140.
    6. Donni, Olivier, 2003. "Collective household labor supply: nonparticipation and income taxation," Journal of Public Economics, Elsevier, vol. 87(5-6), pages 1179-1198, May.
    7. Kooreman, Peter, 1994. "Estimation of Econometric Models of Some Discrete Games," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 9(3), pages 255-268, July-Sept.
    8. Davies, Richard B & Elias, Peter & Penn, Roger, 1992. "The Relationship between a Husband's Unemployment and His Wife's Participation in the Labour Force," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(2), pages 145-171, May.
    9. Marjorie B. McElroy, 1990. "The Empirical Content of Nash-Bargained Household Behavior," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 559-583.
    10. Lundberg, Shelly, 1985. "The Added Worker Effect," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 11-37, January.
    11. Pierre-Andre Chiappori & Bernard Fortin & Guy Lacroix, 2002. "Marriage Market, Divorce Legislation, and Household Labor Supply," Journal of Political Economy, University of Chicago Press, vol. 110(1), pages 37-72, February.
    12. Jean-David Fermanian & Sylvie Lagarde, 1999. "Les horaires de travail dans le couple," Économie et Statistique, Programme National Persée, vol. 321(1), pages 89-110.
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    Cited by:

    1. Guillaume Allegre, 2006. "L’emploi au niveau des ménages, 1982-2002," Sciences Po publications N°2006-20, Sciences Po.
    2. Jara-Díaz, Sergio & Rosales-Salas, Jorge, 2017. "Beyond transport time: A review of time use modeling," Transportation Research Part A: Policy and Practice, Elsevier, vol. 97(C), pages 209-230.
    3. Guillaume Allègre, 2006. "L'emploi au niveau des ménages, 1982-2002 : mesurer la polarisation de l'emploi entre les ménages," Documents de Travail de l'OFCE 2006-20, Observatoire Francais des Conjonctures Economiques (OFCE).
    4. Elena G. F. Stancanelli, 2006. "Les couples sur le marché de l'emploi. Une analyse exploratoire des années récentes," Revue de l'OFCE, Presses de Sciences-Po, vol. 99(4), pages 235-272.
    5. Verónica Herrero & Mónica Bocco, 2007. "Comparación de Ponderaciones en Regresiones Probit Simultáneas en un Modelo para la Estimación de la Participación Laboral," Revista de Economía y Estadística, Universidad Nacional de Córdoba, Facultad de Ciencias Económicas, Instituto de Economía y Finanzas, vol. 45(2), pages 95-124, Diciembre.
    6. repec:hal:spmain:info:hdl:2441/921 is not listed on IDEAS
    7. Elena Stancanelli, 2007. "Marriage and Work: an analysis for French couples in the last decade," Documents de Travail de l'OFCE 2007-10, Observatoire Francais des Conjonctures Economiques (OFCE).
    8. repec:hal:spmain:info:hdl:2441/9719 is not listed on IDEAS

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    More about this item

    Keywords

    Collective labor supply; labor market participation; couples; asymptotic least squares;
    All these keywords.

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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