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Labour supply of married women in Poland: a microeconometric study based on the Polish labour force survey

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  • Puhani, Patrick A.

Abstract

In this paper, the labour supply of married women in Poland is studied using the Polish Labour Force Survey of February 1993 on three competing econometric models, viz. Tobit, Three Regime Tobit and Heckit. It is shown that the choice of model has an influence on conclusions drawn. In particular, the Tobit model - which has been widely applied in empirical labour supply analysis - turns out to be a strikingly bad predictor. Further, there is disagreement between the models regarding the wage elasticity of hours supplied. The preferred model for predicting hours of work is the Heckit model. This shows that an increase in the wage rate will induce employees to reduce their number of hours worked. On the other hand, more women will join the labour market after a rise in the wage. The regression models support the common view that young wives, those who have been unemployed before, or those who have low educational attainments are ceteris paribus much more excluded from effective labour supply than the average person. In addition, wives with young children tend to have both lower participation rates and work shorter hours. The exclusion of a large part of especially the young female population from the labour market may have serious economic costs to Poland because part of its potentially most dynamic human capital is left untrained and unemployed.

Suggested Citation

  • Puhani, Patrick A., 1995. "Labour supply of married women in Poland: a microeconometric study based on the Polish labour force survey," ZEW Discussion Papers 95-12, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  • Handle: RePEc:zbw:zewdip:9512
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    References listed on IDEAS

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    1. Nakamura, Masao & Nakamura, Alice & Cullen, Dallas, 1979. "Job Opportunities, the Offered Wage, and the Labor Supply of Married Women," American Economic Review, American Economic Association, vol. 69(5), pages 787-805, December.
    2. Steiner, Viktor & Bellmann, Lutz, 1994. "The East German wage structure in the transition to a market economy," ZEW Discussion Papers 94-17, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    3. Killingsworth, Mark R. & Heckman, James J., 1987. "Female labor supply: A survey," Handbook of Labor Economics,in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 2, pages 103-204 Elsevier.
    4. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-844, September.
    5. McDonald, John F & Moffitt, Robert A, 1980. "The Uses of Tobit Analysis," The Review of Economics and Statistics, MIT Press, vol. 62(2), pages 318-321, May.
    6. Cogan, John F, 1981. "Fixed Costs and Labor Supply," Econometrica, Econometric Society, vol. 49(4), pages 945-963, June.
    7. Blundell, Richard & Ham, John & Meghir, Costas, 1987. "Unemployment and Female Labour Supply," Economic Journal, Royal Economic Society, vol. 97(388a), pages 44-64, Supplemen.
    8. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    9. Lundberg, Shelly, 1985. "The Added Worker Effect," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 11-37, January.
    10. Mroz, Thomas A, 1987. "The Sensitivity of an Empirical Model of Married Women's Hours of Work to Economic and Statistical Assumptions," Econometrica, Econometric Society, vol. 55(4), pages 765-799, July.
    11. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, vol. 42(4), pages 679-694, July.
    12. James Tobin, 1956. "Estimation of Relationships for Limited Dependent Variables," Cowles Foundation Discussion Papers 3R, Cowles Foundation for Research in Economics, Yale University.
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    Cited by:

    1. Doreen Triebe, 2013. "Wo(men) at Work?: The Impact of Cohabiting and Married Partners' Earning on Women's Work Hours," SOEPpapers on Multidisciplinary Panel Data Research 614, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Puhani, Patrick A., 1996. "Poland on the dole: unemployment benefits, training, and long-term unemployment during transition," ZEW Discussion Papers 96-30, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    3. Puhani, Patrick A., 1997. "All Quiet on the Wage Front? Gender, Public-Private Sector Issues, and Rigidities in the Polish Wage Structure," ZEW Discussion Papers 97-03, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    4. Chirvi, Malte, 2017. "Arbeiten Frauen aufgrund des Ehegattensplittings weniger? Ein quasi-experimenteller Ansatz für Deutschland," arqus Discussion Papers in Quantitative Tax Research 217, arqus - Arbeitskreis Quantitative Steuerlehre.
    5. Irena E. Kotowska & Janina Jóźwiak & Anna Matysiak & Anna Baranowska-Rataj, 2008. "Poland: Fertility decline as a response to profound societal and labour market changes?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 19(22), pages 795-854, July.

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