Married female labour force participation: an analysis of probit model with a natural non-participation rate

Of the probit analysis with a natural no-response rate is applied to empirically examine the determinants of the labour force participation of married women using data from the Panel Study of Income Dynamics in the 1989 interviewing year. The model features simultaneous determination of labour force participation status and the natural non-participation rate of of married women. A natural 2.6% non-participation rate was found among married women. The natural non-participation rate is also significant by the likelihood ratio test. The standard probit model underestimates the probability of non-participation of married women as well as the marginal effect of a particular explanatory variable.