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Modeling Employment Dynamics with State Dependence and Unobserved Heterogeneity

Victoria Prowse

No 337, Economics Series Working Papers from University of Oxford, Department of Economics

Abstract: This paper considers the problem of determining the extent of any state dependencies in women`s labor supply behavior. Employment outcomes are modeled using a dynamic multinomial choice framework including persistent unobserved heterogeneity with a relatively general distribution. In order to ensure reliable parameter estimates, appropriate restrictions are imposed on the distribution of unobservables. Significant state dependence is present in both full-time and part-time employment. State dependencies are overestimated if persistent unobservables are ignored, and underestimated if an overly restrictive form of persistence is imposed.

Keywords: Discrete Labor Supply; Unobserved Heterogeneity; Repeated Multinomial Choice (search for similar items in EconPapers)
JEL-codes: C15 C25 J22 J6 (search for similar items in EconPapers)
Date: 2007-08-01
New Economics Papers: this item is included in nep-dcm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Modeling Employment Dynamics With State Dependence and Unobserved Heterogeneity (2012) Downloads
Working Paper: Modeling employment dynamics with state dependence and unobserved heterogeneity (2012) Downloads
Working Paper: Modeling Employment Dynamics with State Dependence and Unobserved Heterogeneity (2010) Downloads
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