Arbeitspapier

Testing the binomial fixed effects logit model; with an application to female labor supply

Regression models for proportions are frequently encountered in applied work. The conditional expectation function is bounded between 0 and 1 and therefore must be non-linear, requiring nonstandard panel data extensions. One possible approach is the binomial panel logit model with fixed effects (Machado, 2004). We propose a new and simple implementation of the conditional maximum likelihood estimator for standard software. We investigate the properties of the estimator under misspecification and derive a new test for overdispersion. Estimator and test are applied in a study of contracted working volumes, measured as proportion of full-time work, for women in Switzerland.

Language
Englisch

Bibliographic citation
Series: Working Paper ; No. 321

Classification
Wirtschaft
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Labor Force and Employment, Size, and Structure
Subject
proportions data
unobserved heterogeneity
conditional maximum likelihood
overdispersion

Event
Geistige Schöpfung
(who)
Winkelmann, Rainer
Xu, Lin
Event
Veröffentlichung
(who)
University of Zurich, Department of Economics
(where)
Zurich
(when)
2019

DOI
doi:10.5167/uzh-170370
Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Winkelmann, Rainer
  • Xu, Lin
  • University of Zurich, Department of Economics

Time of origin

  • 2019

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