IDEAS home Printed from https://ideas.repec.org/a/eee/asieco/v21y2010i5p494-501.html
   My bibliography  Save this article

Bivariate probit analysis of differences between male and female formal employment in urban China

Author

Listed:
  • Chen, Guifu
  • Hamori, Shigeyuki

Abstract

Using the 2004 and 2006 pooling data from the China Health and Nutrition Survey (CHNS) questionnaire, this paper studies the differences between male and female employment in urban China, taking into account the interdependence between the decision of women to participate in the workforce and the formal hiring decisions of organizations. We take into account this interdependence issue using a bivariate probit model. When certain unobserved factors are ignored that may otherwise influence both the decision of women to participate in the workforce and the formal recruitment decisions of organizations, the results denote that the estimated coefficients of the equation corresponding to the formal hiring of female employees are inconsistent. On the other hand, the results indicate that the conditional formal employment probability of women, which can be obtained through a censored bivariate probit from an all-female sample, was about 3% lower than the unconditional probability obtained through a univariate probit from a sample of only labor market participants. Moreover, the results show that the formal employment probability differential (between males and females), owing to discrimination, will be overestimated in the case of a univariate probit model.

Suggested Citation

  • Chen, Guifu & Hamori, Shigeyuki, 2010. "Bivariate probit analysis of differences between male and female formal employment in urban China," Journal of Asian Economics, Elsevier, vol. 21(5), pages 494-501, October.
    • Handle: RePEc:eee:asieco:v:21:y:2010:i:5:p:494-501
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1049-0078(10)00028-X
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Meng, Chun-Lo & Schmidt, Peter, 1985. "On the Cost of Partial Observability in the Bivariate Probit Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(1), pages 71-85, February.
    2. Guifu Chen & Shigeyuki Hamori, 2014. "Do Chinese Employers Discriminate Against Females When Hiring Employees?," SpringerBriefs in Economics, in: Rural Labor Migration, Discrimination, and the New Dual Labor Market in China, edition 127, chapter 0, pages 39-51, Springer.
    3. Madhu Mohanty, 1998. "Do US employers discriminate against females when hiring their employees?," Applied Economics, Taylor & Francis Journals, vol. 30(11), pages 1471-1482.
    4. CHEN, Guifu & HAMORI, Shigeyuki, 2009. "Economic returns to schooling in urban China: OLS and the instrumental variables approach," China Economic Review, Elsevier, vol. 20(2), pages 143-152, June.
    5. repec:ebl:ecbull:v:10:y:2008:i:14:p:1-17 is not listed on IDEAS
    6. repec:bla:econom:v:62:y:1995:i:248:p:479-93 is not listed on IDEAS
    7. Johnson, Janet L, 1983. "Sex Differentials in Unemployment Rates: A Case for No Concern," Journal of Political Economy, University of Chicago Press, vol. 91(2), pages 293-303, April.
    8. John M. Abowd & Henry S. Farber, 1982. "Job Queues and the Union Status of Workers," ILR Review, Cornell University, ILR School, vol. 35(3), pages 354-367, April.
    9. Madhu Mohanty, 2002. "A bivariate probit approach to the determination of employment: a study of teen employment differentials in Los Angeles County," Applied Economics, Taylor & Francis Journals, vol. 34(2), pages 143-156.
    10. Poirier, Dale J., 1980. "Partial observability in bivariate probit models," Journal of Econometrics, Elsevier, vol. 12(2), pages 209-217, February.
    11. Abowd, John M & Killingsworth, Mark R, 1984. "Do Minority-White Unemployment Differences Really Exist?," Journal of Business & Economic Statistics, American Statistical Association, vol. 2(1), pages 64-72, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhanhui Fu & Hongqiang Jiang & Jiajun Qiao & Xiaojun Jiang & Weichun He, 2023. "Gender Differences in Migrant Workers’ Wages and Their Influencing Factors in the Central Hilly Regions of China," Land, MDPI, vol. 12(7), pages 1-16, July.
    2. Kwadwo Opoku & Francisco M.P. Mugizi & Emmanuel Adu Boahen, 2021. "Gender differences in formal wage employment in urban Tanzania," WIDER Working Paper Series wp-2021-99, World Institute for Development Economic Research (UNU-WIDER).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Madhu Mohanty, 2002. "A bivariate probit approach to the determination of employment: a study of teen employment differentials in Los Angeles County," Applied Economics, Taylor & Francis Journals, vol. 34(2), pages 143-156.
    2. Morais, Flávio & Serrasqueiro, Zélia & Ramalho, Joaquim J.S., 2020. "The zero-leverage phenomenon: A bivariate probit with partial observability approach," Research in International Business and Finance, Elsevier, vol. 53(C).
    3. Antonio J. Trujillo & Dawn C. McCalla, 2004. "Are Colombian sickness funds cream skimming enrollees? An analysis with suggestions for policy improvement," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 23(4), pages 873-888.
    4. Guifu Chen & Shigeyuki Hamori, 2014. "Do Chinese Employers Discriminate Against Females When Hiring Employees?," SpringerBriefs in Economics, in: Rural Labor Migration, Discrimination, and the New Dual Labor Market in China, edition 127, chapter 0, pages 39-51, Springer.
    5. Arrieta, Alejandro, 2007. "A Structural Misclassifcation Model to Estimate the Impact of Physician Incentives on Healthcare Utilization," MPRA Paper 6718, University Library of Munich, Germany.
    6. Heitzman, Shane & Wasley, Charles & Zimmerman, Jerold, 2010. "The joint effects of materiality thresholds and voluntary disclosure incentives on firms' disclosure decisions," Journal of Accounting and Economics, Elsevier, vol. 49(1-2), pages 109-132, February.
    7. McDonald, Tia Michelle & Florax, Raymond & Marshal, Maria I., 2014. "Informal and Formal Financial Resources and Small Business Resilience to Disasters," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170332, Agricultural and Applied Economics Association.
    8. repec:ebl:ecbull:v:10:y:2008:i:14:p:1-17 is not listed on IDEAS
    9. Luca Grilli, 2005. "Internet start-ups access to the bank loan market: evidence from Italy," Applied Economics, Taylor & Francis Journals, vol. 37(3), pages 293-305.
    10. Kajal Lahiri & Chuanming Gao & Bernard Wixon, 2020. "Value of Sample Separation Information in a Sequential Probit Model," Arthaniti: Journal of Economic Theory and Practice, , vol. 19(2), pages 151-176, December.
    11. Colm Harmon & Claire Finn & Arnaud Chevalier & Tarja Viitanen, 2006. "The economics of early childhood care and education : technical research paper for the National Economic and Social Forum," Open Access publications 10197/671, School of Economics, University College Dublin.
    12. Hiroyuki Takeshima & Rajendra Prasad Adhikari & Anjani Kumar, 2016. "Is Access to Tractor Service a Binding Constraint for Nepali Terai Farmers?," Working Papers id:9604, eSocialSciences.
    13. Dimara, Efthalia & Skuras, Dimitris, 2003. "Adoption of agricultural innovations as a two-stage partial observability process," Agricultural Economics, Blackwell, vol. 28(3), pages 187-196, May.
    14. Katharina Wrohlich, 2008. "The excess demand for subsidized child care in Germany," Applied Economics, Taylor & Francis Journals, vol. 40(10), pages 1217-1228.
    15. Ananish Chaudhuri & Pushkar Maitra, 1997. "Determinants of Land Tenure Contracts; Theory and Evidence from Rural India," Departmental Working Papers 199710, Rutgers University, Department of Economics.
    16. Tennekoon, Vidhura S., 2016. "The equivalence of three latent class models and ML estimators," Economics Letters, Elsevier, vol. 141(C), pages 147-150.
    17. Gerald P. Dwyer & Rik Hafer, 2001. "Bank failures in banking panics: Risky banks or road kill?," FRB Atlanta Working Paper 2001-13, Federal Reserve Bank of Atlanta.
    18. Bourguignon, François & Bussolo, Maurizio, 2013. "Income Distribution in Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 1383-1437, Elsevier.
    19. Perali, Federico & Polinori, Paolo & Salvioni, Cristina & Veronesi, Marcella, 2005. "A Bivariate Approach to the Determination of Effective Pollution by Farm-households," 89th Seminar, February 2-5, 2005, Parma, Italy 239273, European Association of Agricultural Economists.
    20. Neil Garston & Tom Larson & Madhu S. Mohanty, 2006. "A Voucher Supplement To Existing Anti-Discrimination Programs In The Job Market," Eastern Economic Journal, Eastern Economic Association, vol. 32(2), pages 331-354, Spring.
    21. Michael J. Pisani & José A. Pagán, 2003. "Sectoral Queuing in a Transitional Economy: The Case of Nicaragua in the 1990s," LABOUR, CEIS, vol. 17(4), pages 571-597, December.

    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:eee:asieco:v:21:y:2010:i:5:p:494-501. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/asieco .

    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.