Alternative approaches to modelling individual transitions: the labour force participation of the wives of unemployed men in the UK

S. Pudney & J. Thomas
This paper argues that for many dynamic labour market issues of interest both fully structural and reduced form empirical approaches are inappropriate. The former often pose quite intractable computational burdens while the latter is unduly restrictive. We illustrate our arguments in the context of the common finding of the lack of an "added worker effect" for the wives of unemployed males using UK data. Our empirical strategy, which combines elements of both approaches, indicates that...