Abstract

http://ssrn.com/abstract=1950603
 
 

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Intertemporal Labor Force Participation of Married Women in Germany: A Panel Data Analysis


Enrica Croda


Ca Foscari University of Venice - Department of Economics

Ekaterini Kyriazidou


affiliation not provided to SSRN

Ioannis Polycarpou


Athens University of Economics and Business - Department of Economics

October 1, 2011

University Ca' Foscari of Venice, Dept. of Economics Research Paper Series No. 17/WP/2011

Abstract:     
This paper analyzes the intertemporal labor force participation behavior of married women using an annual longitudinal sample from the German Socio-Economic Panel. A predominant characteristic of annual participation behavior is the high degree of persistence in individual participation decisions. We use several model specifications to distinguish among the alternative explanations of this serial persistence: state dependence, individual unobserved heterogeneity, and serial correlation in the transitory error component. Similar to Hyslop (1999), we employ both dynamic “fixed effects” linear probability models as well as several static and dynamic probit models with “random effects” and serially correlated errors. In addition, we apply the estimators proposed by Honoré and Kyriazidou (2000) for dynamic “fixed effects” discrete choice models. We find strong state dependence, and substantial effects for fertility variables. Transitory and permanent non-labor income have in general small effects.

Number of Pages in PDF File: 24

Keywords: State dependence, serial correlation, heterogeneity, panel data, intertemporal labor force participation, GSOEP

JEL Classification: C33, C36, J22

Accepted Paper Series


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Date posted: October 29, 2011  

Suggested Citation

Croda, Enrica and Kyriazidou, Ekaterini and Polycarpou, Ioannis, Intertemporal Labor Force Participation of Married Women in Germany: A Panel Data Analysis (October 1, 2011). University Ca' Foscari of Venice, Dept. of Economics Research Paper Series No. 17/WP/2011. Available at SSRN: http://ssrn.com/abstract=1950603

Contact Information

Enrica Croda (Contact Author)
Ca Foscari University of Venice - Department of Economics ( email )
Cannaregio 873
Venice, 30121
Italy
Ekaterini Kyriazidou
affiliation not provided to SSRN
No Address Available
Ioannis Polycarpou
Athens University of Economics and Business - Department of Economics
76 Patission Street
GR-10434 Athens
Greece
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