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Dynamics of female labour force participation in France

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  • R. Collet
  • D. Legros

Abstract

This article formulates and estimates a structural intertemporal model of labour force participation. Relying on theoretical characterizations derived from an economic model of lifetime behaviour, we estimate a dynamic probit model with correlated random effects using longitudinal data to allow for a dynamic structure. The model is applied to a panel of married women drawn from the 1997--2002 French Labour Force surveys in order to represent their participation behaviour. It is estimated by maximum simulated likelihood. Our results show that women’s decisions to go out to work are characterized by significant state dependence, unobserved heterogeneity and negative serial correlation in the transitory error component. In addition, we find that the presence of young children in a woman’s household reduces her labour participation, but unequally according to their age and number. As expected, educational level has a positive impact on women’s participation. Last, a rise in the husband’s wage is found to raise female participation initially and to lower it subsequently. This empirical finding suggests that leisure may not systematically be a normal good, contrary to what is frequently assumed in the literature.

Suggested Citation

  • R. Collet & D. Legros, 2016. "Dynamics of female labour force participation in France," Applied Economics, Taylor & Francis Journals, vol. 48(30), pages 2807-2821, June.
    • Handle: RePEc:taf:applec:v:48:y:2016:i:30:p:2807-2821
    DOI: 10.1080/00036846.2015.1130787
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    References listed on IDEAS

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    1. Gary S. Becker, 1994. "Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition," NBER Books, National Bureau of Economic Research, Inc, number beck94-1.
    2. Cyriaque EDON & Thierry KAMIONKA, 2010. "Dynamic modeling of fertility and labour market participation of married or cohabiting women," LIDAM Discussion Papers IRES 2010017, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
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    Cited by:

    1. Mahdi Majbouri, 2019. "Twins, family size and female labour force participation in Iran," Applied Economics, Taylor & Francis Journals, vol. 51(4), pages 387-397, January.

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