IDEAS home Printed from https://ideas.repec.org/p/ces/ifowps/_56.html
   My bibliography  Save this paper

Why is the share of women willing to work in East Germany larger than in West Germany? A logit model of extensive labour supply decision

Author

Listed:
  • Beate Henschel

Abstract

The aim of the paper is to analyse differences in the labour force participation (LFP) between East and West German women. Using microcensus data in a binary choice model, we distinguish three main explanations for these differences: the skill composition, the regional labour market and childcare availability. As LFP in-creases in the skill-level, the larger share of high-skilled women in East Germany can explain more than 10 percent of the differences. Whereas East German women do not vary their efforts when regional labour market conditions worsen, West German women are discouraged thereof. Female LFP in East Germany is positively influenced by the provision of full-time childcare while West German women do not show any significant reaction.

Suggested Citation

  • Beate Henschel, 2008. "Why is the share of women willing to work in East Germany larger than in West Germany? A logit model of extensive labour supply decision," ifo Working Paper Series 56, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    • Handle: RePEc:ces:ifowps:_56
    as

    Download full text from publisher

    File URL: https://www.ifo.de/DocDL/IfoWorkingPaper-56.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gustafsson, Siv & Jacobsson, Roger, 1985. "Trends in Female Labor Force Participation in Sweden," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 256-274, January.
    2. Colombino, Ugo & De Stavola, Bianca, 1985. "A Model of Female Labor Supply in Italy Using Cohort Data," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 275-292, January.
    3. Joshi, Heather E & Layard, Richard & Owen, Susan J, 1985. "Why Are More Women Working in Britain?," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 147-176, January.
    4. Ofer, Gur & Vinokur, Aaron, 1985. "Work and Family Roles of Soviet Women: Historical Trends and Cross-Section Analysis," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 328-354, January.
    5. Shimada, Haruo & Higuchi, Yoshio, 1985. "An Analysis of Trends in Female Labor Force Participation in Japan," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 355-374, January.
    6. Felix Büchel & C. Katharina Spieß, 2002. "Kindertageseinrichtungen und Müttererwerbstätigkeit: neue Erkenntnisse zu einem bekannten Zusammenhang," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 71(1), pages 95-113.
    7. Franz, Wolfgang, 1985. "An Economic Analysis of Female Work Participation, Education, and Fertility: Theory and Empirical Evidence for the Federal Republic of Germany," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 218-234, January.
    8. Bonin, Holger & Euwals, Rob, 2001. "Participation Behavior of East German Women after German Unification," IZA Discussion Papers 413, Institute of Labor Economics (IZA).
    9. Lundberg, Shelly, 1985. "The Added Worker Effect," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 11-37, January.
    10. Riboud, Michelle, 1985. "An Analysis of Women's Labor Force Participation in France: Cross-Section Estimates and Time-Series Evidence," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 177-200, January.
    11. Denise Doiron & Guyonne Kalb, 2005. "Demands for Child Care and Household Labour Supply in Australia," The Economic Record, The Economic Society of Australia, vol. 81(254), pages 215-236, September.
    12. Maarten van Ham & Clara H. Mulder & Pieter Hooimeijer, 2001. "Local Underemployment and the Discouraged Worker Effect," Urban Studies, Urban Studies Journal Limited, vol. 38(10), pages 1733-1751, September.
    13. Cramer,J. S., 2011. "Logit Models from Economics and Other Fields," Cambridge Books, Cambridge University Press, number 9780521188036, September.
    14. Fuchs, Johann & Weber, Brigitte, 2004. "Frauen in Ostdeutschland: Erwerbsbeteiligung weiterhin hoch," IAB-Kurzbericht 200404, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    15. Katharina Wrohlich, 2004. "Child Care Costs and Mothers' Labor Supply: An Empirical Analysis for Germany," Discussion Papers of DIW Berlin 412, DIW Berlin, German Institute for Economic Research.
    16. Moulton, Brent R, 1987. "Diagnostics for Group Effects in Regression Analysis," Journal of Business & Economic Statistics, American Statistical Association, vol. 5(2), pages 275-282, April.
    17. Hernandez Iglesias, Feliciano & Riboud, Michelle, 1985. "Trends in Labor Force Participation of Spanish Women: An Interpretive Essay," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 201-217, January.
    18. Gregory, R G & McMahon, P & Whittingham, B, 1985. "Women in the Australian Labor Force: Trends, Causes, and Consequences," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 293-309, January.
    19. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
    20. Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-338, May.
    21. van Ham, Maarten & Büchel, Felix, 2004. "Unwilling or Unable? Spatial, Institutional and Socio-Economic Restrictions on Females' Labor Market Access," IZA Discussion Papers 1034, Institute of Labor Economics (IZA).
    22. James J. Heckman & Thomas E. Macurdy, 1980. "A Life Cycle Model of Female Labour Supply," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(1), pages 47-74.
    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. Paula E. Gobbi & Juliane Parys & Gregor Schwerhoff, 2018. "Intra‐household allocation of parental leave," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 51(1), pages 236-274, February.
    2. Burkert, Carola & Garloff, Alfred & Schaade, Peter & Herrmann-Schwetje, Andrea & Paul, Anke, 2008. "Frauen und Männer am Ausbildungs- und Arbeitsmarkt in Hessen : Genderbericht Hessen 2007," IAB-Regional. Berichte und Analysen aus dem Regionalen Forschungsnetz. IAB Hessen 200801, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Hanel Barbara & Riphahn Regina T., 2012. "The Employment of Mothers – Recent Developments and their Determinants in East and West Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(2), pages 146-176, April.
    4. Bogai, Dieter & Wiethölter, Doris & Partmann, Michael, 2009. "Die Arbeitsmarktsituation für Frauen in Berlin-Brandenburg," IAB-Regional. Berichte und Analysen aus dem Regionalen Forschungsnetz. IAB Berlin-Brandenburg 200901, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Tobias C. Vogt & Fanny A. Kluge, 2013. "Care for money? Mortality improvements, increasing intergenerational transfers, and time devoted to the elderly," MPIDR Working Papers WP-2013-014, Max Planck Institute for Demographic Research, Rostock, Germany.
    6. Tobias C. Vogt & Fanny A. Kluge, 2014. "Care for Money?: Mortality Improvements, Increasing Intergenerational Transfers, and Time Devoted to the Elderly," SOEPpapers on Multidisciplinary Panel Data Research 721, DIW Berlin, The German Socio-Economic Panel (SOEP).
    7. Verena Tobsch, 2013. "Betreuung von Schulkindern: ein weiterer Schlüssel zur Aktivierung ungenutzter Arbeitskräftepotenziale?," SOEPpapers on Multidisciplinary Panel Data Research 573, DIW Berlin, The German Socio-Economic Panel (SOEP).

    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. Heather Antecol, "undated". "An Examination of Cross-Country Differences in the Gender Gap in Labor Force Participation Rates," Canadian International Labour Network Working Papers 37, McMaster University.
    2. Antecol, Heather, 2000. "An examination of cross-country differences in the gender gap in labor force participation rates," Labour Economics, Elsevier, vol. 7(4), pages 409-426, July.
    3. Aysit Tansel, 2001. "Economic Development and Female Labor Force Participation in Turkey: Time-Series Evidence and Cross-Province Estimates," Working Papers 0124, Economic Research Forum, revised 08 2001.
    4. Wasmer, Etienne, 2006. "The Economics of Prozac: Do Employees Really Gain from Strong Employment Protection?," IZA Discussion Papers 2460, Institute of Labor Economics (IZA).
    5. François Gardes, 2021. "Biases on variances estimated on large data-sets," Post-Print halshs-03325118, HAL.
    6. François Gardes, 2021. "Biases on variances estimated on large data-sets," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-03325118, HAL.
    7. Blanchflower, David G., 2000. "Self-employment in OECD countries," Labour Economics, Elsevier, vol. 7(5), pages 471-505, September.
    8. Blanchflower, David G & Oswald, Andrew J, 1994. "Estimating a Wage Curve for Britain: 1973-90," Economic Journal, Royal Economic Society, vol. 104(426), pages 1025-1043, September.
    9. Moulton, Brent R & Randolph, William C, 1989. "Alternative Tests of the Error Components Model," Econometrica, Econometric Society, vol. 57(3), pages 685-693, May.
    10. Ishaan Bansal & Kanika Mahajan, 2021. "COVID-19, Income Shocks and Female Employment," Working Papers 69, Ashoka University, Department of Economics.
    11. Philip R. P. Coelho & Tung Liu, 2012. "The Returns to College Education," Working Papers 201202, Ball State University, Department of Economics, revised Aug 2012.
    12. François Gardes, 2021. "Biases on variances estimated on large data-sets," Documents de travail du Centre d'Economie de la Sorbonne 21022, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    13. Alejo, Javier & Montes-Rojas, Gabriel & Sosa-Escudero, Walter, 2018. "Testing for serial correlation in hierarchical linear models," Journal of Multivariate Analysis, Elsevier, vol. 165(C), pages 101-116.
    14. Antweiler, Werner, 2001. "Nested random effects estimation in unbalanced panel data," Journal of Econometrics, Elsevier, vol. 101(2), pages 295-313, April.
    15. Montes-Rojas, Gabriel, 2016. "An equicorrelation Moulton factor in the presence of arbitrary intra-cluster correlation," Economics Letters, Elsevier, vol. 145(C), pages 221-224.
    16. Rob Euwals & Marike Knoef & Daniel Vuuren, 2011. "The trend in female labour force participation: what can be expected for the future?," Empirical Economics, Springer, vol. 40(3), pages 729-753, May.
    17. Rania Gihleb & Osnat Lifshitz, 2022. "Dynamic Effects of Educational Assortative Mating on Labor Supply," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 46, pages 302-327, October.
    18. Mitchell A. Petersen, 2009. "Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches," The Review of Financial Studies, Society for Financial Studies, vol. 22(1), pages 435-480, January.
    19. Rok Spruk & Mitja Kovac, 2018. "Inefficient Growth," Review of Economics and Institutions, Università di Perugia, vol. 9(2).
    20. Ted Nabil ARANKI, 2001. "The Effect of Israeli Closure Policy on Wage Earnings in the West Bank and Gaza Strip," Middle East and North Africa 330400006, EcoMod.

    More about this item

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

    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:ces:ifowps:_56. 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: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/ifooode.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.