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Joint estimation of sequential labor force participation and fertility decisions using Markov chain Monte Carlo techniques

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  • Troske, Kenneth R.
  • Voicu, Alexandru

Abstract

We analyze the effect of children on the labor supply of married women in a framework that accounts for the endogeneity of labor market and fertility decisions, for the heterogeneity of the effects of children and their correlation with the fertility decisions, and for the correlation of sequential labor market decisions. Women with stronger propensity for market work have fewer children, work more before the first birth, and face larger negative effects of children. The total effect of a child remains considerable long after birth; prior birth-related reductions in labor supply account for a significant share of the total effect.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 17 (2010)
Issue (Month): 1 (January)
Pages: 150-169

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Handle: RePEc:eee:labeco:v:17:y:2010:i:1:p:150-169

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Web page: http://www.elsevier.com/locate/labeco

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Keywords: Female labor supply Endogenous fertility decisions Heterogeneous children effects Multinomial probit model Gibbs sampler;

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Cited by:
  1. Sommerfeld K. & Fitzenberger B. & Steffes S., 2013. "Causal effects on employment after first birth - A dynamic treatment approach -," ROA Research Memorandum 010, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  2. E. Bardasi & C. Monfardini, 2004. "Women's Employment, Children and Transition: An Empirical Analysis on Poland," Working Papers 523, Dipartimento Scienze Economiche, Universita' di Bologna.
  3. Xiaoyan Chen Youderian, 2014. "The motherhood wage penalty and non-working women," Economics Bulletin, AccessEcon, vol. 34(2), pages 757-765.
  4. Troske, Kenneth & Voicu, Alexandru, 2009. "The Effect of the Timing and Spacing of Births on the Level of Labor Market Involvement of Married Women," IZA Discussion Papers 4417, Institute for the Study of Labor (IZA).

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