Sporting Activity, Employment Status and Wage

We propose a structural model of participation to sporty activities and labour supply. We jointly model employment, wage and sporting activity using a dynamic model. We estimate for the period going from 1994 to 1999 a dynamic multivariate model with random effects using the German Socioeconomic panel (GSOEP). The error terms of the equations of the model can be correlated. Each of these error terms can be auto correlated allowing shocks on one of the components of the model to have an impact on all the error terms of the model the next periods. Individual effects, one for each equation, can be correlated. The model is estimated using simulated maximum likelihood estimator. The initial conditions problem is taken into account.