IDEAS home Printed from https://ideas.repec.org/a/ecr/col070/81142.html
   My bibliography  Save this article

Does the decision to participate in the labour market affect people’s subjective well-being?

Author

Listed:
  • Montero, Rodrigo
  • Vásquez, Diego

Abstract

This article provides evidence regarding the potential effect of labour participation on life satisfaction. To take into account possible endogeneity in the decision to participate in the labour market, a two-stage least squares estimation is carried out. Hence, an excluded instrument is used for the decision to participate, where the existence of a weak instrument is rejected. Then, to take into account the ordinal nature of the dependent variable, an ordered probit model with a binary endogenous explanatory variable is estimated. This method makes it possible to jointly estimate all the parameters of the model. The results, which are robust to the presence of endogeneity in the decision to participate, show that labour participation does not have an impact on life satisfaction. Regarding the rest of the explanatory variables included in the model, the results are in line with previous empirical evidence.

Suggested Citation

  • Montero, Rodrigo & Vásquez, Diego, 2024. "Does the decision to participate in the labour market affect people’s subjective well-being?," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    • Handle: RePEc:ecr:col070:81142
    as

    Download full text from publisher

    File URL: http://repositorio.cepal.org/handle/11362/81142
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecr:col070:81142. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Biblioteca CEPAL (email available below). General contact details of provider: https://edirc.repec.org/data/eclaccl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.