Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 184: Dynamic labour force participation of married women in Sweden

Nizamul Islam ()
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Nizamul Islam: Department of Economics, School of Economics and Commercial Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG

Abstract: This paper analyzes the inter-temporal labor force participation behavior of married women in Sweden. A dynamic probit model is applied, controlling for endogenous initial condition and unobserved heterogeneity, using longitudinal data to allow for a rich dynamic structure. Significant unobserved heterogeneity is found, along with serial correlation in the error components, and negative state dependence. The findings may indicate serial persistence due to persistent individual heterogeneity.

Keywords: Inter-temporal labour force participation; state dependence; heterogeneity

JEL-codes: C23; C25; J22

37 pages, First version: June 8, 2005. Revised: July 10, 2007. Earlier revisions: November 14, 2005, April 26, 2006.

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