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Simultaneity in binary outcome models with an application to employment for couples

Bo E. Honoré, Luojia Hu, Ekaterini Kyriazidou, and Martin Weidner
Two of Peter Schmidt's many contributions to econometrics have been to introduce a simultaneous logit model for bivariate binary outcomes and to study estimation of dynamic linear fixed effects panel data models using short panels. In this paper, we study a dynamic panel data version of the bivariate model introduced in Schmidt and Strauss (1975) that allows for lagged dependent variables and fixed effects as in Ahn and Schmidt (1995). We combine a conditional likelihood approach with a method of moments approach to obtain an estimation strategy for the resulting model. We apply this estimation strategy to a simple model for the intra-household relationship in employment. Our main conclusion is that the within-household "correlation" in employment differs significantly by the ethnicity composition of the couple even after one allows for unobserved household specific heterogeneity.
Year of publication:
[2022]
Authors: Honoré, Bo E. ; Hu, Luojia ; Kyriazidou, Ekaterini ; Weidner, Martin
Publisher: [Chicago, Illinois] : Federal Reserve Bank of Chicago
Subject: Simultaneity | Binary Response | Fixed Effects | Moment Conditions | Employment
Extent:
1 Online-Ressource (circa 39 Seiten)
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Series:
Working papers / Federal Reserve Bank of Chicago. - Chicago, Ill. : [Verlag nicht ermittelbar], ISSN 1936-5276, ZDB-ID 2186680-6. - Vol. WP 2022, 34 (July 2022)
Type of publication: Book / Working Paper
Type of publication (narrower categories): Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language: English
Other identifiers:
10.21033/wp-2022-34 [DOI]
hdl:10419/267989 [Handle]
Classification: C01 - Econometrics ; C33 - Models with Panel Data ; C35 - Discrete Regression and Qualitative Choice Models ; E24 - Employment; Unemployment; Wages
Source:
ECONIS - Online Catalogue of the ZBW
Persistent link: https://ebvufind01.dmz1.zbw.eu/10013332270
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