Arbeitspapier

State Dependence and Female Labor Supply in Germany: The Extensive and the Intensive Margin

In this paper I develop an intertemporal discrete choice model of labor supply. The framework incorporates the nonlinearities in the household budget set and accounts for state dependence in labor supply. Based on panel data for Germany (SOEP), I estimate this model using a dynamic conditional logit panel data model with random effects. The estimation results show that state dependence is significantly positive at the extensive margin, yet modest or non existing on the intensive margin. Using the Markov chain property, I derive short and long term labor supply elasticities on both the intensive and extensive margin. The labor supply elasticities diŽer significantly between the short and long run.

Language
Englisch

Bibliographic citation
Series: DIW Discussion Papers ; No. 538

Classification
Wirtschaft
Time Allocation and Labor Supply
Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models
Single Equation Models; Single Variables: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
Subject
State Dependence
Labor Supply of Married Women
Panel Data
Unobserved Heterogeneity.

Event
Geistige Schöpfung
(who)
Haan, Peter
Event
Veröffentlichung
(who)
Deutsches Institut für Wirtschaftsforschung (DIW)
(where)
Berlin
(when)
2005

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Haan, Peter
  • Deutsches Institut für Wirtschaftsforschung (DIW)

Time of origin

  • 2005

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