Search Results

Source: EEA-ESEM
Resulting in 1 citation.
1. Buddlemeyer, Hielke
Troske, Kenneth R.
Voicu, Alexandru
Joint Estimation of Sequential Labor Force Participation and Fertility Decisions Using Markov Chain Monte Carlo Techniques
Working Paper, European Economic Association & Econometric Society, January 30, 2004.
Also: http://www.eea-esem.com/papers/eea-esem/2004/1671/BuddelmeyerTroskeVoicu1.pdf
Cohort(s): NLSY79
Publisher: European Economic Association & Econometric Society
Keyword(s): Bayesian; Childbearing; Fertility; Heterogeneity; Human Capital; Labor Supply; Leave, Family or Maternity/Paternity; Markov chain / Markov model; Modeling, Probit; Women

Permission to reprint the abstract has not been received from the publisher.

Children have both a direct and indirect effect on a women’s supply of labor to the market. The direct effect is a result of children raising the value of non-market option of women thereby reducing their labor supply. The indirect effect derives from the fact that having children frequently forces women to leave the labor market for some period, leading to a fall in their human capital and their market wage, and therefore in their propensity to work in the formal labor market. Distinguishing these two effects is important for effective policy design. This paper proposes a model that disentangles the direct and indirect effect of children on women’s labor force participation, and evaluates their relative importance. Sequential participation decisions for four levels of labor market involvement and fertility decisions are jointly modelled. The estimation is performed using Markov chain Monte Carlo methods. The indirect effect is more important and grows with the length of the interruption. The direct effect declines with the age of the child.
Bibliography Citation
Buddlemeyer, Hielke, Kenneth R. Troske and Alexandru Voicu. "Joint Estimation of Sequential Labor Force Participation and Fertility Decisions Using Markov Chain Monte Carlo Techniques." Working Paper, European Economic Association & Econometric Society, January 30, 2004.