Estimation of the Probability of Labor Force Participation of the AFDC Population-At-Risk
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The primary purpose of this paper is to apply maximum likelihood estimation (MLE) of nonlinear specifications of the probability of labor force participation (LFP) of female family heads with dependent children present, the Aid to Families with Dependent Children (AFDC) population- at-risk. Despite the fact that the method of MLE has been available for decades, MLE of highly non-linear specifications is not common. Although methods for the analysis of qualitative data have been discussed for many years, analysts continue to use inappropriate methods to estimate inappropriate functional specifications. One explanation is that computer software for MLE solution of highly non-linear functions is not trivial.
Brown, G.G., Rutemiller, H., and Solberg, E., 1977, “Maximum Likelihood Estimation of the Probability of Labor Force Participation Where the Dependent Variable is Binary, with an Application to the AFDC Population-at- Risk,” Atlantic Economics Quarterly, 2, pp. 22-31.
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