Abstract
Monthly observations from the German Socio-Economic Panel (GSOEP) are used to model the labor force behavior of older married couples in Germany. A discrete time, competing risks hazard model of transitions among labor force states defined by the employment status of both spouses is estimated. The analysis indicates that the probability of one spouse exiting employment is much larger if the other spouse is not employed than if the other spouse is employed. Similarly, one member of a couple is much more likely to enter employment if the spouse is employed than if the spouse is not employed.
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