British Household panel Survey data for waves 1-5 (1991-5) is used to compa
re paid work participation rates of men and women. Year-on-year persistence
in paid work propensities is high, but greater for men than women. Non-wor
k persistence is higher for women. Using panel data probit regression model
s, we also investigate why men's and women's participation rates differ, co
mparing the roles of differences in observable characteristics and differen
ces in rates of return to these characteristics, while also controlling for
unobserved heterogeneity. Most of the difference in participation rates is
accounted For by the differences in returns associated with the presence o
f children, especially young ones.