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Oferta de Trabajo en la República Dominicana: Tendencias y Determinantes
[Labor Supply in the Dominican Republic: Trends and Determinants]

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  • Ramirez, Francisco A.

Abstract

This paper documents recent trends of the labor supply in the Dominican Republic, and inquire about factor explaining its behavior. Entails an empirical analysis of labor supply phenomena both from a point of view of participation rate and the hours dedicated to labor market. Using information from the National Labor Force Survey, I show the main stylized facts and patterns related the participation rates and working hours between 1991 to 2012, and identify the main determinants. During this period, female participation rises steadily, mainly in the age range between 40 and 60 years. In contrast, male participation rate shrinks mildly. The hours worked, also register a negative trend since the 2000. The results suggest that the level of schooling and the condition of head of the household are the main factor behind the rise of the female participation rate in labor force. The number of children does not figure as a limiting factor in the incorporation both man and women to the labor force. Nevertheless, remittances plays a negative and important impact on participation. Regarding to labor supply, estimations suggest that women have a bigger response to changes in real wages than men, and in both cases substitution effect govern the response of hours worked. Once the decision to participate in the labor market is taken, the number of children becomes a relevant variable explaining hours of work, with a positive sign. This results suggest that policies oriented to the insertion to the labor market of women, must be based on tax exception or on incentives that enhance the salary that women receives. Also, policies oriented to collaborate in children nursering will have significant impact on labor supply, but not in participation rates.

Suggested Citation

  • Ramirez, Francisco A., 2013. "Oferta de Trabajo en la República Dominicana: Tendencias y Determinantes [Labor Supply in the Dominican Republic: Trends and Determinants]," MPRA Paper 51913, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:51913
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    References listed on IDEAS

    as
    1. Killingsworth, Mark R. & Heckman, James J., 1987. "Female labor supply: A survey," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 2, pages 103-204, Elsevier.
    2. Mroz, Thomas A, 1987. "The Sensitivity of an Empirical Model of Married Women's Hours of Work to Economic and Statistical Assumptions," Econometrica, Econometric Society, vol. 55(4), pages 765-799, July.
    3. Blundell, Richard & MaCurdy, Thomas & Meghir, Costas, 2007. "Labor Supply Models: Unobserved Heterogeneity, Nonparticipation and Dynamics," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 6, chapter 69, Elsevier.
    4. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    5. Mr. Umidjon Abdullaev & Mr. Marcello M. Estevão, 2013. "Growth and Employment in the Dominican Republic: Options for a Job-Rich Growth," IMF Working Papers 2013/040, International Monetary Fund.
    6. Heckman, James J, 1993. "What Has Been Learned about Labor Supply in the Past Twenty Years?," American Economic Review, American Economic Association, vol. 83(2), pages 116-121, May.
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    More about this item

    Keywords

    Labor Supply; Participation Rates; Dominican Republic.;
    All these keywords.

    JEL classification:

    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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