A Beta-Logistic Model for the Analysis of Sequential Labor Force Participation by Married Women

James Heckman and Robert Willis

No 112, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In this paper, we discuss statistical problems that arise in studying sequences of quantal responses (e.g., labor force participation) in panel data on heterogeneous populations (i.e., populations in which there is unobserved variation in response probabilities). Assuming that response probabilities are governed by a beta distribution, we derive a generalization of the cross-section logit model to enable it to deal with sequences of discrete events in panel data. This model is applied to panel data on labor force participation of married women. One of our findings is that the distribution of participation probabilities is U-shaped, indicating that most women have participation probabilities near zero or one.

Date: 1975-11
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Published as Heckman, James J. and Robert J. Willis. "A Betalogistic Model for the Analysis of Sequential Labor Force Participation by Married Women." Journal of Political Economy, Vol. 85, No. 1 (1977), pp. 27-58.

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