Fertility and female employment dynamics in Europe: the effect of using alternative econometric modeling assumptions

Abstract

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Can child care policy encourage employment and fertility?

“…Francesconi (2002)). Keane and Wolpin (2002) show that a first-order Markov model that captures intertemporal state dependence effects provides a good approximation of the predicted optimal fertility and employment behavior over the life-cycle, prompting recent studies to adopt a flexible specification of a first-order Markov model to estimate such life-cycle behavior (Carrasco (2001), Del Boca and Sauer (2009) or Michaud and Tatsiramos (2008)). 1 To identify state dependence effects, it is crucial to account for individual specific unobserved heterogeneity and for the non-randomness of the initial state (Heckman, 1981).…”

Dynamics of health and labor market risks

“…The key problem is the simultaneity of the two latent processes which implies the requirement of appropriate exclusion restrictions in order to identify causal relationships. Carrasco (2001) and similarly Michaud and Tatsiramos (2008) estimate a joint dynamic model of fertility and female employment and use the sex composition of children as an instrument for fertility in the employment equation. In the joint model of health and labor market risks at least two different exclusion restrictions would be required as both endogenous variables can be assumed to simultaneously affect the other process.…”

Smoking persistence across countries: A panel data analysis

“…15 Other examples of the use of the Wooldridge CML approach in the field of health economics include Contoyannis et al (2004) and Hernández-Quevedo et al (2008). 16 Other recent papers that use this non-parametric specification of heterogeneity are Halliday (2008) and Michaud and Tatsiramos (2011).…”

“…In addition, as inMichaud and Tatsiramos (2011), one element in the support of each of the two non-parametric shocks is normalized to zero. See also Appendix A.2 for further details on the parameter vector ˛.18 For the case of females in Belgium, we show results from an estimation that converged to a local maximum, i.e.…”