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

51 Pages Posted: 25 May 2001

See all articles by James J. Heckman

James J. Heckman

University of Chicago - Department of Economics; National Bureau of Economic Research (NBER); American Bar Foundation; Institute for the Study of Labor (IZA); CESifo (Center for Economic Studies and Ifo Institute)

Robert J. Willis

University of Michigan at Ann Arbor - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: November 1975

Abstract

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.

Suggested Citation

Heckman, James J. and Willis, Robert J., A Beta-Logistic Model for the Analysis of Sequential Labor Force Participation by Married Women (November 1975). NBER Working Paper No. w0112. Available at SSRN: https://ssrn.com/abstract=260303

James J. Heckman (Contact Author)

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Robert J. Willis

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