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

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James J. Heckman
Robert J. Willis

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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.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 0112.

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Date of creation: Nov 1975
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Handle: RePEc:nbr:nberwo:0112

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  1. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, vol. 42(4), pages 679-94, July. [Downloadable!] (restricted)
  2. James J. Heckman & Robert J. Willis, 1974. "Estimation of a Stochastic Model of Reproduction: An Econometric Approach," NBER Working Papers 0034, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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