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“Panelizing” Repeated Cross Sections

Female Labor Force Participation in The Netherlands and West Germany

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Abstract

This paper considers the implementation of a non-stationary, heterogeneous Markov model for the analysis of binary dependent variables in a time series of repeated cross-sectional (RCS) surveys. The model offers the opportunity to estimate entry and exit transition probabilities and to examine the effects of time-constant and time-varying covariates on the hazards. We show how maximum likelihood estimates of the parameters can be obtained by Fisher’s method-of-scoring and how to estimate both fixed and time-varying covariate effects. The model is exemplified with an analysis of the labor force participation decision of Dutch and West German women using ISSP (and other) data from 10 annual Dutch surveys conducted between 1987 and 1996 and 7 annual West German surveys conducted between 1988 and 1994. Some open problems concerning the application of the model are discussed.

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Correspondence to Rob Eisinga.

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Pelzer, B., Eisinga, R. & Franses, P.H. “Panelizing” Repeated Cross Sections. Qual Quant 39, 155–174 (2005). https://doi.org/10.1007/s11135-004-1673-x

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