Abstract
This paper analyzes labor supply decisions of married women in order to identify differences between East and West Germany. The semiparametric General Additive Model (GAM) was chosen to avoid assumptions about the functional type of correlation and to discover characteristics in behavior. The estimator is based on a partial integration following Linton and Nielsen (1995). The analytical features of the new estimator are easier to determine than in the traditional back-fitting algorithm. This analysis unveiled significant differences of labor supply behavior among East and West Germany.
I gratefully acknowledge the support from Stefan Sperlich (Special Research Unit SFB 373 ’Quantification and Simulation of Economic Processes’ at Humboldt-University Berlin) for the computational implementation of the integration estimator.
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Kempe, W. (1998). Labor Supply Decisions in Germany — A Semiparametric Regression Analysis. In: Balderjahn, I., Mathar, R., Schader, M. (eds) Classification, Data Analysis, and Data Highways. Studies in Classification, Data Analysis, and Knowledge Organization. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-72087-1_7
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