Literature Review – Work Choices of Married Women

Literature review The drive add together of women has been the correction of extensive study both in Australia and worldwidely. 1 Despite this, exactly a few international and Australian studies have examined the inter-temporal boil ply behaviour of women, and it remains a less understood area of childbed supply research (Hyslop 1999). 2 However, study in this area is increment rapidly due to the increasing availability of panel data and melio deem computational power and techniques. This chapter reviews a selection of studies of inter-temporal bray supply of women in Australian and everyplaceseas.Past research Several international studies have examined inter-temporal doggedness in dig out supply. Shaw (1994) used the Panel Study of Income drivings (PSID) over the period 1967-1987 to measure effort in (annual) works hours of white women in the United States. She assemble evidence of (statistic tout ensembley) significant persistence in an unmarrieds promote supply even after unequivocal for early(a) influencing chemical elements such as wages, the age and enumerate of children and singular health status.Further, the boundary of persistence was name to have changed little over the 20 socio-economic class period studied. Shaw overly gear up that unseen (time invariant) individual heterogeneity play an important role in the persistence. However, the study did not examine whether the persistence also resulted from unobserved flying shocks (or errors) that might be seri each(prenominal)y gibe. Hyslop (1999), also apply the PSID data (for the period 1979-1985), examined the dynamics of dig up magnate community of married women in the United States and set in motion evidence of state habituation. spot unobserved individual heterogeneity was embed to contribute to the persistence of labour force participation, transitory 1 For a detailed survey of the international literature on womens labour supply, see Killingsworth (1983), Ki llingsworth and Heckman (1986) and Heckman (1993). 2 A few studies also examine inter-temporal labour supply behaviour of men, such as Muhleisen and Zimmermann (1994) for Germany and Arulampalam, Booth and Taylor (2000) for the United Kingdom. LITERATURE check over 5 rrors were found to be ostracisely agree over time, suggesting that failing to control for serially correlated transitory errors would lead to under regard of state dependence. The non-labour income of married women, mensurable by their partners earnings, was also found to have a electronegative effect on their labour force participation. Permanent non-labour income was found to be more important in affecting a cleaning ladyhoods labour force participation than transitory non-labour income.The age and number of young children were also found to have a significant negative effect on the labour force participation decisions of women. Inter-temporal persistence in womens labour supply was also examined by downwind and Tae (2005) using the first four waves (1998-2001) of the Korean Labour and Income Panel Study. Without considering serial coefficient of correlation of transitory errors, the authors found that both state dependence and unobserved individual heterogeneity were important in explaining inter-temporal persistence in the labour force participation of women.They also found that the extent of state dependence of labour force participation varied with discipline, marital status and age. State dependence was found to increase with age, and was higher for married than for single women and higher for women with a junior college aim of information relative to those with other levels of education. In the Australian context, very little research exists on the inter-temporal persistence of labour market activity. One study, Knights et al. 2002), examined labour market dynamics of Australian youth (those ancient 15-29 years), using the Australian Longitudinal Survey over the period 1985-198 8. Dynamic labour market activity of both males and females was analysed separately, with each group world further divided into high and low education groups. High education was defined as the completion of secondary school with the low education defined as secondary school not being completed. scarcely two labour force states were examined employed or not employed (binary variable).The authors found that an individuals battle status in the precedent year predicted his/her involvement status in the currently year for all the four gender-education groups, suggesting evidence of state dependence of employment status. They also found evidence that unobserved individual heterogeneity was important explanatory factor in the persistence of employment status for all groups examined. Like Lee and Tae (2005), however, Knights et al. (2002) did not examine whether the observed persistence was due to serially correlated transitory errors.Some studies have also examined the effect of ser ially correlated transitory errors on inter-temporal persistence. Tatsiramos (2008), for example, examined female employment dynamics in seven European countries (Demark, France, Germany, the Netherlands, Italy, Spain and the United Kingdom) to test the effects of fertility had on employment status. State dependence was found in the employment status for 6 WORK CHOICES OF MARRIED WOMEN DRIVERS OF CHANGE women in all countries after controlling for observed and unobserved individual heterogeneity and serially correlated transitory errors.The magnitude of state dependence as measured by intermediate partial effects was very similar across all the countries studied, with the fortune of a women being employed being 31 to 49 plowshare points higher if employed in the previous year. Like Hyslop (1999), Tatsiramos (2008) also found that transitory errors are negatively correlated over time for all countries, and only in the wooing of Denmark, was the serial correlation insignificant. Permanent non-labour income was found to have a significant and negative effect on labour supply for all countries except Denmark and the United Kingdom, where the effect was positive.In case of the Netherlands and Italy, a womans transitory non-labour income was also found to ebb labour supply. Summing up Much of the existing literature of the inter-temporal behaviour of labour supply has focused on whether or not a woman is involved in paid work a binary selection measured as labour force participation or employment status. In contrast, the approach taken in this study is to examine working hours as a measure of labour supply, and thus treat non-employment (those with zippo working hours) as a censored outcome. Further, there are no Australian (and few international) studies that have examined both the effect of observed and unobserved individual heterogeneity and serially correlated transitory errors on inter-temporal labour supply. Despite this, studies of labour force partic ipation by Australian women, comprehensively reviewed by Birch (2005), provide a valuable guide to the pick of explanatory variables. Although the estimates vary across studies and are sensitive to model specifications and estimation techniques, some patterns emerge.The studies generally found that increases in a womans wages, educational attainment, labour market experience, and the cost of living, all have a positive effect on a womans labour supply. Conversely increases in family income and the number of dependent young children had a negative effect. 3 In this study the focus is on hours worked of individuals. The individual level measures are used to obtain corresponding aggregate indicators of labour supply such as the labour force participation rate, the employment rate and total hours worked of all employed persons, and average hours worked per employed person. LITERATURE REVIEW 7