A Beta-Logistic Model for the Analysis of Sequential Labor Force Participation by Married Women
In this paper, we discuss statistical problems that arise in studying sequences of quantal responses (e.g., labor force participation) in panel data on heterogeneous populations (i.e., populations in which there is unobserved variation in response probabilities). Assuming that response probabilities are governed by a beta distribution, we derive a generalization of the cross-section logit model to enable it to deal with sequences of discrete events in panel data. This model is applied to panel data on labor force participation of married women. One of our findings is that the distribution of participation probabilities is U-shaped, indicating that most women have participation probabilities near zero or one.
Research for this paper was supported by a grant to the National Bureau of Economic Research from the Center for Population Research, National Institute of Child Health and Human Development, PHS, Department of Health, Education, and Welfare. We wish to thank Ralph Shnelvar and Louis Garrison for computational assistance. An earlier draft of this paper was presented at the Third World Congress of the Econometric Society, Toronto, Canada, in August,1975. The present draft benefited from the comments of R. Gronau, S. Haberman, and L. Lillard.
Heckman, James J. and Robert J. Willis. "A Betalogistic Model for the Analysis of Sequential Labor Force Participation by Married Women." Journal of Political Economy, Vol. 85, No. 1 (1977), pp. 27-58. citation courtesy of