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Why Do Women Wait? Matching, Wage Inequality, and the Incentives for Fertility Delay

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Author Info
Elizabeth M. Caucutt (University of Rochester)
Nezih Guner (Pennsylvania State University)
John Knowles (University of Pennsylvania)

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Abstract

This paper explores the interaction between wage inequality and the marriage and fertility decisions of young women. We develop an equilibrium search model of marriage, divorce, and investment in children that allows for differential timing of fertility. We show how patterns of fertility timing in U.S. data can be explained by the incentives for fertility delay implied by marriage and labor markets. We find that these incentives help explain both the cross-sectional relationship between women's wages and fertility timing and the changes over the past 40 years in married women's fertility timing and labor supply. (Copyright: Elsevier)

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File URL: http://dx.doi.org/10.1006/redy.2002.0190
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Publisher Info
Article provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics.

Volume (Year): 5 (2002)
Issue (Month): 4 (October)
Pages: 815-855
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Handle: RePEc:red:issued:v:5:y:2002:i:4:p:815-855

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Related research
Keywords: marriage; fertility; returns to experience;

Other versions of this item:

Find related papers by JEL classification:
J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Moffitt, Robert, 1984. "The Estimation of a Joint Wage-Hours Labor Supply Model," Journal of Labor Economics, University of Chicago Press, vol. 2(4), pages 550-66, October. [Downloadable!] (restricted)
  2. Juan Carlos Conesa, 2002. "Educational attainment and timing of fertility decisions," Working Papers in Economics 78, Universitat de Barcelona. Espai de Recerca en Economia. [Downloadable!]
  3. Eckstein, Zvi & Wolpin, Kenneth I, 1989. "Dynamic Labour Force Participation of Married Women and Endogenous Work Experience," Review of Economic Studies, Blackwell Publishing, vol. 56(3), pages 375-90, July.
  4. Chiappori, Pierre-André & Fortin, Bernard & Lacroix, Guy, 1998. "Household Labor Supply, Sharing Rule and the Marriage Market," Cahiers de recherche 9810, Université Laval - Département d'économique. [Downloadable!]
  5. Jeremy Greenwood & Nezih Guner & and John Knowles, 1999. "More on marriage, fertility, and the distribution of income," Working Paper 9904, Federal Reserve Bank of Cleveland. [Downloadable!]
    Other versions:
  6. Altug, Sumru & Miller, Robert A, 1998. "The Effect of Work Experience on Female Wages and Labour Supply," Review of Economic Studies, Blackwell Publishing, vol. 65(1), pages 45-85, January. [Downloadable!] (restricted)
  7. Rubalcava, L. & Thomas, D., 2000. "Family Bargaining and Welfare," Papers 00-10, RAND - Labor and Population Program.
    Other versions:
  8. Becker, Gary S, 1974. "A Theory of Marriage: Part II," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages S11-S26, Part II, . [Downloadable!] (restricted)
    Other versions:
  9. Hotz, V Joseph & Miller, Robert A, 1988. "An Empirical Analysis of Life Cycle Fertility and Female Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 91-118, January. [Downloadable!] (restricted)
  10. Gunderson, Morley, 1989. "Male-Female Wage Differentials and Policy Responses," Journal of Economic Literature, American Economic Association, vol. 27(1), pages 46-72, March. [Downloadable!] (restricted)
  11. Lillard, L.A. & Waite, L.J., 1993. "A Joint Model of Marital Childbearing and Marital Disruption," Papers 93-02, RAND - Labor and Population Program.
    Other versions:
  12. Andrés Erosa & Luisa Fuster & Diego Restuccia, 2002. "Fertility Decisions and Gender Differences in Labor Turnover, Employment, and Wages," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(4), pages 856-891, October. [Downloadable!] (restricted)
  13. Browning, Martin, 1992. "Children and Household Economic Behavior," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1434-75, September. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Andres Erosa & Luisa Fuster & Diego Restuccia, 2005. "A general equilibrium analysis of parental leave policies," Working Paper 05-08, Federal Reserve Bank of Richmond. [Downloadable!]
    Other versions:
  2. Larry E. Jones & Rodolfo E. Manuelli & Ellen R. McGrattan, 2003. "Why are married women working so much?," Staff Report 317, Federal Reserve Bank of Minneapolis. [Downloadable!]
  3. Michelle Sheran Sylvester, 2007. "The Career and Family Choices of Women: A Dynamic Analysis of Labor Force Participation, Schooling, Marriage and Fertility Decisions," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 10(3), pages 367-399, July. [Downloadable!] (restricted)
  4. Claudia Olivetti, 2006. "Changes in Women's Hours of Market Work: The Role of Returns to Experience," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 9(4), pages 557-587, October. [Downloadable!] (restricted)
    Other versions:
  5. Javier Diaz-Jimenez & Eugenio P. Giolito, 2008. "Gender differences and the timing of first marriages," Economics Working Papers we080804, Universidad Carlos III, Departamento de Economía. [Downloadable!]
  6. John Knowles, 2007. "Why Are Married Men Working So Much? The Macroeconomics of Bargaining Between Spouses," IZA Discussion Papers 2909, Institute for the Study of Labor (IZA). [Downloadable!]
  7. Betsey Stevenson & Justin Wolfers, 2007. "Marriage and Divorce: Changes and their Driving Forces," IZA Discussion Papers 2602, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  8. Larry E. Jones & Alice Schoonbroodt & Michèle Tertilt, 2008. "Fertility Theories: Can They Explain the Negative Fertility-Income Relationship?," NBER Working Papers 14266, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  9. Lucie Schmidt, . "Exchange Rate Response to Macro News: Through the Lens of Microstructure," Department of Economics Working Papers 2007-3, Department of Economics, Williams College. [Downloadable!]
  10. Jonas D. M. Fisher & Martin Gervais, 2009. "Why has home ownership fallen among the young?," Working Paper Series WP-09-01, Federal Reserve Bank of Chicago. [Downloadable!]
    Other versions:
  11. Jonas D. M. Fisher & Martin Gervais, 2007. "First-time home buyers and residential investment volatility," Working Paper Series WP-07-15, Federal Reserve Bank of Chicago. [Downloadable!]
  12. Matthias Doepke, 2002. "Child Mortality and Fertility Decline: Does the Barro-Becker Model Fit the Facts?," UCLA Economics Working Papers 824, UCLA Department of Economics. [Downloadable!]
    Other versions:
  13. John Knowles, 2005. "Why are Married Men Working So Much?," PIER Working Paper Archive 05-031, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania. [Downloadable!]
    Other versions:
  14. Catalina Amuedo-Dorantes & Jean Kimmel, 2004. "The Motherhood Wage Gap for Women in the United States: The Importance of College and Fertility Delay," Economic Working Papers at Centro de Estudios Andaluces E2004/07, Centro de Estudios Andaluces. [Downloadable!]
    Other versions:
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