Participation behavior of East German women after German Unification
The paper studies the determinants of labor force participation by East German women after unification. To isolate the role of preferences on labor force participation from individual characteristics, we develop a panel data model that simultaneously explains participation, employment and wages. The model, estimated for East and West Germany on the basis of the German Socio-Economic Panel, indicates that distinct preferences could explain the regional difference in participation rates at unification. Afterward East German women became less willing to participate, but the negative labor supply trend was offset on the aggregate level by changes in characteristics and wages promoting participation.
What people are saying - Write a review
We haven't found any reviews in the usual places.
Other editions - View all
aggregate level basis Behavior of East characteristics of East characteristics simulation childcare facilities cohabiting women cohort covariances differences in individual East and West East German women eastern economic transition empirical model employed employment opportunity equation employment opportunity probability employment rates estimated parameters estimation results exclusion restrictions family characteristics female labor force female participation rates force participation rates German Democratic Republic German Socio-Economic Panel German Unification GSOEP hurdle identification Idiosyncratic errors impact individual characteristics individual specific involuntary unemployed involuntary unemployment IZA Discussion Papers labor economics labor force participation labor market participation labor market status labor supply behavior labor supply preferences Ln(wage market wage married or cohabiting maximum likelihood multivariate normal distribution number of children observation period participation and employment Participation Behavior participation decision participation equation participation gap preferences on labor rate of East real wages remainder error term Section trends University x Vocational wage equation West German sample western levels woman