Analyzing female labor supply — Evidence from a Dutch tax reform

Among OECD countries, the Netherlands has an average female labor force participation, but by far the highest rate of part-time work. This paper investigates the extent to which married women respond to financial incentives. We exploit exogenous variation caused by a substantial Dutch tax reform in 2001. Our main conclusion is that the positive significant effect of the tax reform on labor force participation dominates the negative insignificant effect on working hours. The latter contradicts the common empirical finding of positive wage elasticities. Our preferred explanation is that women respond more to changes in tax allowances than to changes in marginal tax rates.     

Formal sector job growth and women’s labor sector participation : The case of Mexico

This paper looks at the effects of demand and supply on the determinants of labor sector (school, home work, informal, and formal) participation between Torreon and Tijuana, Mexico for married and single women. Comparisons between the two cities are used to capture differences in labor demand. Torreon is a traditional city with an agri-industrial base and Tijuana is a border city with large export processing (maquiladora) and tourism sectors, both of which demand female labor. Factors influencing labor supply include both individual and household characteristics. Married women, given the strong cultural tradition of working in the home, do not significantly increase their paid labor participation with higher labor demand or changing characteristics of the household. Personal characteristics have the greatest impact on labor sector participation. Single women do, however, increase their formal sector participation with additional employment opportunities and respond to household needs by moving in and out of the paid labor market. Results indicate that increases in labor demand in Mexico from the NAFTA could expand formal sector labor force participation of single women.     

Labor force transitions of older married couples in Germany

Monthly observations from the German Socio-Economic Panel (GSOEP) are used to model the labor force behavior of older married couples in Germany. A discrete time, competing risks hazard model of transitions among labor force states defined by the employment status of both spouses is estimated. The analysis indicates that the probability of one spouse exiting employment is much larger if the other spouse is not employed than if the other spouse is employed. Similarly, one member of a couple is much more likely to enter employment if the spouse is employed than if the spouse is not employed.     

Trade Affected Workers in the Service Sector

A bstract . Using input output data for 1987 and 1990, this study identified those groups of service sector workers most vulnerable to trade-related employment displacements. Relative to other industry groups, workers (both black and white) in service industries which experienced an increase in (positive) net trade-related employment, were more likely to be male, elderly (over 65 years of age), less educated (high school graduates) and unskilled (laborers). In contrast, service industries which suffered a decline in (positive) net trade-related employment between 1987 and 1990, were relatively more skill-intensive (as measured by the share of college educated workers, scientists, engineers and managers in the labor force) , and more likely to employ women, married couples and individuals in the 25 to 35 age bracket. Union members on the other hand, were overrepresented in service industries which suffered net trade–related employment losses in 1987 and 1990. The latter industries, however, experienced an improvement over the period.     

The social meaning of female participation in the labor force

Female participation in the labor force in the states of America was strongly associated with male participation in the labor force. Participation was higher in states which were in the north, which were more urban and where unemployment was less. Thus, female labor force participation appears to be affected by general social conditions which affect both sexes alike.     

Women of color in the labor market

While the labor force participation rates of women have increased, and women work in a wider range of occupations than they did two decades ago, there remain gaps between the status of women and men, as well as between white women and women of color. Additionally, as the female labor force becomes more diverse, there are also differences among women of color in labor force participation, unemployment, and occupational status. Based on projections regarding the future structure of the labor force, it is likely that even as the status of some women of color improves, many will remain stuck in low-wage service and clerical jobs.     

Simulation estimation of two‐tiered dynamic panel Tobit models with an application to the labor supply of married women

In this paper a computationally practical simulation estimator is proposed for the two‐tiered dynamic panel Tobit model originally developed by Cragg ( 1971 ). The log‐likelihood function simulated through procedures based on a recursive algorithm formulated by the Geweke–Hajivassiliou–Keane simulator is maximized. The simulation estimators are then applied to study the labor supply of married women. The rich dynamic structure of the labor force participation decision as well as hours worked decisions that are conditional on the participation of married women are identified by using the proposed simulation estimators. The average partial effects of the participation and hours worked decisions for married women in response to fertility decisions and increases in the husband's income are also investigated. It is found that the hypothesis that the fertility decision is exogenous and the hypothesis that the husband's income is exogenous to married women's labor supply function are both rejected in the dynamic and static two‐tiered models. Moreover, children aged between 6 and 13 years old may have a negative impact on the hours worked decision for married women that is conditional on their participation. However, these children may provide some positive incentives for married women to participate in the labor force. Copyright © 2009 John Wiley & Sons, Ltd.     

The effect of household appliances on female labor force participation: Evidence from microdata

We estimate the effect of household appliance ownership on the labor force participation rate of married women using micro-level data from the 1960 and 1970 U.S. Censuses. In order to identify the causal effect of home appliance ownership on married women's labor force participation rates, our empirical strategy exploits both time-series and cross-sectional variation in these two variables. To control for endogeneity, we instrument a married woman's ownership of an appliance by the average ownership rate for that appliance among single women living in the same U.S. state. Single women's labor force participation rates did not increase between 1960 and 1970. We find evidence in support of the hypothesis that the diffusion of household appliances contributed to the increase in married women's labor force participation rates during the 1960's.     

Social security and the labor supply of older married couples

This paper provides estimates of the impact of social security benefits on the labor force behavior of older married couples in the United States, with the ‘spouse benefit’ provision receiving particular attention. The empirical results using data from the Retirement History Survey show that the spouse benefit provision has a moderately small negative impact on labor force participation by older married women and a small positive impact on the labor force participation of older married men. The results are used to evaluate the potential labor supply impact of a proposal to eliminate spouse benefits and replace them with earnings sharing.     

Support for part-time work as a channel to female employment: the moderating effects of national gender empowerment and labour market conditions

Using a multi-source data set collected across eight European countries, this article examines how characteristics of both the organizational environment and the larger national context relate to the organizational-level variable of women's employment. Our study revealed that, in countries that were high in gender empowerment measure (GEM), establishments that were more supportive of part-time work options also employed a higher proportion of women. One reason for this relationship may be that in high-GEM countries offering part-time employment is a way for an organization to signal its support for work–life balance, something that makes it more attractive to women. In countries with low GEM, an establishment's greater support for part-time work was associated with employing a greater proportion of women only when establishments experienced recruitment difficulties. Key differences in gender empowerment between countries are discussed.     

Who's got the balance? A study of satisfaction with the work–family balance among part-time service sector employees in five western European countries

Working part-time is frequently considered a viable strategy for employees to better combine work and non-work responsibilities. The present study examines differences in satisfaction with work-family balance (SWFB) among professional and non-professional part-time service sector employees in five western European countries. Part-time employees were found to be more SWFB than full-time employees even after taking varying demands and resources into account. However, there are important differences among the part-timers. Employees in marginal part-time employment with considerably reduced working hours were the most satisfied. Professionals were found to profit less from reduced working hours and experienced lower levels of SWFB than non-professionals. No significant differences in SWFB were found between male and female part-time workers.     

Parenthood and the earnings of married men and women

We use longitudinal data to examine the relationship between parenthood, wages, and hours worked for married men and women. We find evidence of negative selection into parenthood, substantial child-related reallocations of time within the household, and heterogeneity in the effects of children on household behavior. In households in which the wife experiences an interruption in employment, mothers' wages and hours worked fall, while fathers' hours and wages increase. In households in which the mother remains continuously attached to the labor force, however, there is no evidence of a wage decline for mothers, and the hours worked by fathers decrease substantially.     

State dependence in youth labor market experiences, and the evaluation of policy interventions

We investigate the extent and type of state dependence in labor market outcomes for young low-skilled Australians. Our model allows for three labor force states, employment, unemployment and out of the labor force, and for observed and unobserved heterogeneity. We find evidence of occurrence dependence, but no lagged duration dependence. A past employment spell increases the probability of employment in the future, but the length of the spell does not matter. A past spell of unemployment undoes the positive benefits from a spell in employment. Interpretations of these effects and implications for labor market policies are discussed.     

信息化中女性就业问题的思考

信息化使女性劳动者劳动生产率、经济地位以及福利水平均得到了极大的提高,同时也使女性面临着应对技术与劳动力市场竞争变动的巨大挑战。文章论述了信息化与女性就业的关系,并针对其问题深入分析,力图为政府、企业亦或个人认识女性在信息化时代的作用和意义提供研究的参考。     

Child-custody reform, marital investment in children, and the labor supply of married mothers

Research on child custody primarily focuses on the well-being of children following divorce. We extend this literature by examining how the prospect of joint child custody affects within-marriage investment in children through changes in household bargaining power. Variation in the timing of joint-custody reforms across states provides a natural-experiment framework with which to examine within-marriage investment in children. The probability of children's private school attendance declines by 12% in states that adopt joint-custody laws. We also find evidence linking joint-custody reform to higher rates of labor force participation for married mothers, which may indicate less time devoted household production.     

Health insurance and retirement of married couples

Most health insurance in the USA is provided by employers until eligibility for public health insurance (Medicare) begins at age 65. Retiring before 65 exposes workers who lack retiree health insurance coverage to the risk of catastrophic medical expenditure. We solve and estimate a dynamic model of the employment behavior of older married couples that includes risky medical expenditure and health insurance. Parameter estimates imply that the risk‐reducing feature of health insurance can account for about half of the observed association between retiree health insurance and employment for married men, but can account for only one tenth of the much larger observed association for married women. Policy simulations imply very small effects on employment of changing the age of eligibility for Medicare from 65 to 67. Copyright © 2006 John Wiley & Sons, Ltd.     

Part-time employment in Hong Kong: a gendered phenomenon?

In recent years, part-time employment in Hong Kong has grown considerably. Unlike Western industrialized countries where women play an overwhelming role in this form of employment, in Hong Kong a large proportion (44 per cent) of part-time workers are male. This study addresses the extent, patterns and trends in part-time employment in Hong Kong. In addition, it examines gender differences (such as age pattern, marital status, sectoral and occupational distribution) in this form of employment. Statistical analysis of survey data reveals that certain socio-demographic variables have differential effects on participation in part-time work for men and women. Finally, practical implications and future research directions are discussed.     

How do very open economies adjust to large immigration flows? Evidence from Spanish regions

We study the labor market effects of the large immigration wave in Spain between 2001 and 2006. In this period the foreign-born share increased from 6% to 13%, with a total inflow exceeding three million immigrants. Our analysis exploits the large variation in the size of immigration flows across Spain's regions. To identify causal effects, we take advantage of the fact that immigrants' location choices were strongly driven by early migrant settlements that arrived during the 1980s. We find that the relatively unskilled migration inflows did not affect the wages or employment rates of unskilled workers in the receiving regions. The growth of the unskilled labor force was absorbed mostly through increases in total employment. This increase did not originate in changes in the composition of regional output, but was instead driven by changes in skill intensity at the industry level. Regions that received a large inflow of unskilled immigrants increased the intensity of use of the now more abundant (unskilled) labor, relative to other regions. The key industries responsible for this absorption were retail, construction, hotels and restaurants and domestic services. These results are inconsistent with standard open economy models but are in line with recent empirical studies for the United States and Germany.     

Effects of U.S. equal employment opportunity and affirmative action programs on women's employment stability

An important labor market issue in the United States is the effect that the Equal Employment Opportunity and affirmative action programs that were implemented in 1965 have had on the employment of women relative to that of men. Using time series data covering the period 1947–1988, an analysis of this issue is undertaken. The results indicate that women in the 20–54 age group benefitted in terms of greater stability of employment (i.e., less sensitivity to short run variations in employment) over the period 1965–1980 while they lost some of these gains over the period 1981–1988 (corresponding to the tenure of the Reagan Administration). Men in the same age group, on the other hand, experienced the opposite effect. That is, men in the 20–54 age group became more sensitive to short run variations in employment over the period 1965–1980 and less sensitive over the period 1981–1988. The evidence also indicates that the EEO and affirmative action programs had the effect of increasing the share of projected employment of women in the 20–54 age group and in the 55–64 age group while decreasing the share of projected employment of men in the comparable age groups.     

Race,Self‐Employment,and Labor Absorption

Past studies have argued that in the large cities of developing societies, unemployment is often alleviated when displaced workers are absorbed into the small‐scale entrepreneurial activities of the informal economy. The present study applies this argument to an analysis of women's self‐employment in the U.S. South during the Great Depression. Census data show that in large southern cities in 1940, the unemployment of black women was meaningfully reduced by the self‐employment of these women in domestic service. These data further suggest that dynamics of race, unemployment, and the self‐employment of women in domestic service can be represented by an inverted‐U‐shaped labor absorption curve. These results make several contributions to research on race, labor‐market disadvantage, and self‐employment in the informal sector.