Scandinavian Working Papers in Economics
Working Papers in Economics,
University of Gothenburg, Department of Economics
No 259: A Dynamic Tobit Model of Female Labor Supply
Nizamul Islam ()
Additional contact information
Nizamul Islam: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG
Abstract: A dynamic Tobit model is applied to longitudinal data to estimate the hours of work of married women in Sweden during 1992-2001. Hours of work are found to be negatively related to fertility. Other characteristics of married women are also found to have an effect on labor supply. Inter- temporal labor supply decisions seemed to be characterized by a substantial amount of unobserved heterogeneity, first order state dependence and serially correlated error components. The findings suggest that the first order state dependence and unobserved heterogeneity are very sensitive to the initial condition.
Keywords: Female labor supply; state dependence; heterogeneity; dynamic Tobit
30 pages, August 29, 2007
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