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

24 Pages Posted: 29 Oct 2011  

Enrica Croda

Ca Foscari University of Venice - Dipartimento di Economia

Ekaterini Kyriazidou

affiliation not provided to SSRN

Ioannis Polycarpou

Athens University of Economics and Business - Department of Economics

Date Written: October 1, 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.

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

JEL Classification: C33, C36, J22

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: https://ssrn.com/abstract=1950603

Enrica Croda (Contact Author)

Ca Foscari University of Venice - Dipartimento di Economia ( 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

Paper statistics

Downloads
145
Rank
164,896
Abstract Views
568