Labor market participation in France: an asymptotic least squares analysis of couples' decisions

Emmanuel Duguet and Véronique Simonnet ()

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Abstract: This paper examines the interactions between spouses' decisions to join the labor force. We use the asymptotic least squares method in order to estimate a system of equations with limited dependent variables. We find that when spouse's decision-making is modeled as simultaneous, this affects primarily the man's participation equation who appears to be positively influenced by whether the woman works or not, by the number of children and by the birth of a child. The woman's decision to participate is not affected by whether the man participates or not and depends negatively of the number of children and the birth of a child. This implies that there is a female leadership in decisions to participate in the labor market and that the added-worker effect should be reinterpreted as a function of demography rather than unemployment. © Springer Science+Business Media, LLC 2007.

Keywords: Asymptotic least squares; Couples; Labor market participation; Labor supply (search for similar items in EconPapers)
Date: 2007-03
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Citations: View citations in EconPapers (4)

Published in Review of Economics of the Household, 2007, 5, pp.159--179. ⟨10.1007/s11150-007-9008-z⟩

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Journal Article: Labor market participation in France: an asymptotic least squares analysis of couples’ decisions (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02877988

DOI: 10.1007/s11150-007-9008-z

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