Heterogeneity and State Dependence in Dynamic Models of Labor Supply PDF Download

Author: James Joseph Heckman
Publisher:
ISBN:
Category : Labor supply
Languages : en
Pages : 57

View

Book Description

Author: Victoria L. Prowse
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

View

Book Description
We extend existing work on the dynamics of labor force participation by distinguishing between full-time and part-time employment and by allowing unobserved heterogeneity in the effects of previous employment outcomes, children and education on labor supply behavior. In addition, unobserved heterogeneity may feature autocorrelation and correlated random effects. Our results reveal significant variation in the effects of children and education on labor supply behavior. Moreover, the omission of random coefficients and autocorrelation biases estimates of state dependencies. On average, temporary shocks that increase the rate of part-time employment lead subsequently to lower rates of non-employment than do shocks that temporarily increase the rate of full-time work.

Author: Michael P. Keane
Publisher:
ISBN:
Category :
Languages : en
Pages :

View

Book Description

Author: Md. Nizamul Islam
Publisher: Goteborg University
ISBN:
Category : Labor supply
Languages : en
Pages : 134

View

Book Description

Author: United States. Department of Labor. Office of the Assistant Secretary for Policy, Evaluation, and Research
Publisher:
ISBN:
Category : Government publications
Languages : en
Pages : 126

View

Book Description
Annotated bibliography of evaluation and research reports emanating from the USA department of labor (asper) on the labour market, economic policy, employment and vocational training programmes for the period from 1970 to 1979.

Author: Monica Deza
Publisher:
ISBN:
Category : Alcohol
Languages : en
Pages : 0

View

Book Description
Previous literature presents mixed evidence on the effect of alcohol consumption on labor market outcomes. On one hand, heavy alcohol consumption has been shown to have detrimental effects on labor market outcomes. On the other hand, moderate consumption is positively associated with wages and employment. Despite substantial reduced form evidence, previous literature has not been able to separately identify the causal pathways linking moderate versus heavy alcohol use to labor market performance due to the lack of natural experiments that only target moderate versus heavy drinking, as well as limitations of available structural methods that model state dependence and unobserved heterogeneity. This study develops a multiple-equation dynamic discrete choice ordered logit model, which allows separate identification of the contribution of state dependence (within and between outcomes) and unobserved heterogeneity. I apply this newly-developed model to differentiate the effects of moderate and heavy drinking, after accounting for other correlated unobserved heterogeneity. This study finds that moderate alcohol use increases employment, which is consistent with moderate alcohol consumption being a venue for social capital accumulation. Policies that target alcohol consumption separately by dosage level may be beneficial to employment in ways that have not previously been expected.

Author: Sherwin Rosen
Publisher: University of Chicago Press
ISBN: 0226726304
Category : Political Science
Languages : en
Pages : 408

View

Book Description
The papers in this volume present an excellent sampling of the best of current research in labor economics, combining the most sophisticated theory and econometric methods with high-quality data on a variety of problems. Originally presented at a Universities-National Bureau Committee for Economic Research conference on labor markets in 1978, and not published elsewhere, the thirteen papers treat four interrelated themes: labor mobility, job turnover, and life-cycle dynamics; the analysis of unemployment compensation and employment policy; labor market discrimination; and labor market information and investment. The Introduction by Sherwin Rosen provides a thoughtful guide to the contents of the papers and offers suggestions for continuing research.

Author: Wayne-Roy Gayle
Publisher:
ISBN:
Category :
Languages : en
Pages : 53

View

Book Description
This paper investigates conditional choice probability estimation of dynamic structural discrete and continuous choice models. I extend the concept of finite dependence in a way that accommodates non-stationary, irreducible transition probabilities. I show that under this new definition of finite dependence, one-period dependence is obtainable in any dynamic structural model with non-degenerate transition functions. This finite dependence property also provides a convenient and computationally cheap representation of the optimality conditions for the continuous choice variables. I allow for discrete-valued unobserved heterogeneity in utilities, transition probabilities, and production functions. The unobserved heterogeneity may be correlated with the observable state variables. I show the estimator is root-n--asymptotically normal. I develop a new and computationally cheap algorithm to compute the estimator, and analyse the finite sample properties of this estimator via Monte Carlo techniques. I apply the proposed method to estimate a model of education and labor supply choices to investigate properties of the distribution of returns to education, using data from the National Longitudinal Survey of Youth 1979.

Author: Mr.Ippei Shibata
Publisher: International Monetary Fund
ISBN: 1513524895
Category : Business & Economics
Languages : en
Pages : 71

View

Book Description
This paper proposes a hidden state Markov model (HMM) that incorporates workers’ unobserved labor market attachment into the analysis of labor market dynamics. Unlike previous literature, which typically assumes that a worker’s observed labor force status follows a first-order Markov process, the proposed HMM allows workers with the same labor force status to have different history-dependent transition probabilities. I show that the estimated HMM generates labor market transition probabilities that match those observed in the data, while the first-order Markov model (FOM) and its many-state extensions cannot. Even compared with the extended FOM, the HMM improves the fit of the empirical transition probabilities by a factor of 30. I apply the HMM to (1) calculate the long-run consequences of separation from stable employment, (2) study evolutions of employment stability across different demographic groups over the past several decades, (3) compare the dynamics of labor market flows during the Great Recession to those during the 1981 recession, and (4) highlight the importance of looking beyond distributions of current labor force status.

Author: G. S. Maddala
Publisher: Cambridge University Press
ISBN: 9780521338257
Category : Business & Economics
Languages : en
Pages : 418

View

Book Description
This book presents the econometric analysis of single-equation and simultaneous-equation models in which the jointly dependent variables can be continuous, categorical, or truncated. Despite the traditional emphasis on continuous variables in econometrics, many of the economic variables encountered in practice are categorical (those for which a suitable category can be found but where no actual measurement exists) or truncated (those that can be observed only in certain ranges). Such variables are involved, for example, in models of occupational choice, choice of tenure in housing, and choice of type of schooling. Models with regulated prices and rationing, and models for program evaluation, also represent areas of application for the techniques presented by the author.