Bivariate Probit Analysis of the Differences Between Male and Female Formal Employment in Urban China

Guifu Chen and Shigeyuki Hamori
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Guifu Chen: Xiamen University

Chapter Chapter 6 in Rural Labor Migration, Discrimination, and the New Dual Labor Market in China, 2014, pp 65-76 from Springer

Abstract: Abstract Using the 2004 and 2006 pooling data of the China Health and Nutrition Survey (CHNS) questionnaire, this chapter studies the differences between male and female employment in urban China, taking into account the interdependence of the decisions of women to participate in the workforce and the formal hiring choices of organizations. We probe this interdependence with a bivariate probit model. When certain unobserved factors that may influence both of these decisions are ignored, the estimated coefficients of the equation corresponding to the formal hiring of female employees are inconsistent. However, when results are obtained through a censored bivariate probit of an all-female sample, the conditional formal employment probability of women is about 3 % lower than the unconditional probability acquired through a univariate probit of a sample of labor market participants. Moreover, the findings show that the formal employment probability differential (between males and females) because of discrimination will be overestimated in the case of a univariate probit model.

Keywords: Probit Model; Formal Employment; Household Registration; Partial Observability; Informal Employment (search for similar items in EconPapers)
Date: 2014
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Journal Article: Bivariate probit analysis of differences between male and female formal employment in urban China (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:spr:spbchp:978-3-642-41109-0_6

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DOI: 10.1007/978-3-642-41109-0_6

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