Analysis of Labor Participation Behavior of Korean Women with Dynamic Probit and Conditional Logit

Author

Myoung-jae LEE, Singapore Management UniversityFollow
Yoon-Hee TAE, Korea Development Institute

Publication Type

Journal Article

Version

publishedVersion

Publication Date

2-2005

Abstract

We analyse the dynamic labour participation behaviour of Korean women. State dependence under unobserved heterogeneity is considered, where the heterogeneity may be unrelated, pseudo-related, or arbitrarily related to regressors. Three minor methodological contributions are made: interaction terms with lagged response are allowed in dynamic conditional logit; a three-stage algorithm for dynamic probit is proposed; and treating the initial response as fixed is shown to be ill-advised. The state dependence is about 0.6 × SD(error), higher for the married or junior college-educated, and lower for women in their twenties and thirties. While education increases participation, college education has negative effects for women in their forties or above. Marriage has a high negative short-term effect but a positive long-term effect.

Discipline

Asian Studies | Labor Economics

Research Areas

Econometrics

Publication

Oxford Bulletin of Economics and Statistics

Volume

67

Issue

1

First Page

71

Last Page

91

ISSN

0305-9049

Identifier

10.1111/j.1468-0084.2005.00110.x

Publisher

Wiley

Citation

LEE, Myoung-jae and TAE, Yoon-Hee. Analysis of Labor Participation Behavior of Korean Women with Dynamic Probit and Conditional Logit. (2005). Oxford Bulletin of Economics and Statistics. 67, (1), 71-91.
Available at: https://ink.library.smu.edu.sg/soe_research/292

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.

Additional URL

https://doi.org/10.1111/j.1468-0084.2005.00110.x