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Employment, Family Union, and Childbearing Decisions in Great Britain

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  • Arnstein Aassve
  • Simon Burgess
  • Matt Dickson
  • Carol Propper

Abstract

The paper investigates the relationship between work and family life in Britain. Using appropriate statistical techniques we estimate a five-equation model, which includes birth events, union formation, union dissolution, employment and non-employment events. The model allows for unobserved heterogeneity that is correlated across all five equations. We use information from the British Household Panel Survey, including the retrospective histories concerning work, union, and child bearing, to estimate this model. We obtain well-defined parameter estimates, including significant and correlated unobserved heterogeneity. We find that transitions in and out of employment for men are relatively independent of other transitions. In contrast, there are strong links between female employment, having children and union formation. By undertaking a detailed micro simulations analysis, we show that different levels of female labour force participation do not necessarily lead to large changes in fertility levels. Changes in union formation and fertility levels, on the other hand, do have a significant impact on employment rates.

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File URL: http://sticerd.lse.ac.uk/dps/case/CP/CASEpaper84.pdf
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Bibliographic Info

Paper provided by Centre for Analysis of Social Exclusion, LSE in its series CASE Papers with number 084.

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Date of creation: Apr 2004
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Handle: RePEc:cep:sticas:084

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Web page: http://sticerd.lse.ac.uk/case/_new/publications/default.asp

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Keywords: demographic transitions; marriage; divorce; birth; employment;

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References

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  1. Lillard, L.A. & Waite, L.J., 1993. "A Joint Model of Marital Childbearing and Marital Disruption," Papers 93-02, RAND - Labor and Population Program.
  2. Arnstein Aassve & Simon Burgess & Andrew Chesher & Carol Propper, 2002. "Transitions from home to marriage of young Americans," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 17(1), pages 1-23.
  3. Michael J. Brien, 1997. "Racial Differences in Marriage and the Role of Marriage Markets," Journal of Human Resources, University of Wisconsin Press, vol. 32(4), pages 741-778.
  4. Wolfe, Barbara & Wilson, Kathryn & Haveman, Robert, 2001. "The role of economic incentives in teenage nonmarital childbearing choices," Journal of Public Economics, Elsevier, vol. 81(3), pages 473-511, September.
  5. Dawn Upchurch & Lee Lillard & Constantijn Panis, 2002. "Nonmarital childbearing: Influences of education, marriage, and fertility," Demography, Springer, vol. 39(2), pages 311-329, May.
  6. Newman, John L & McCulloch, Charles E, 1984. "A Hazard Rate Approach to the Timing of Births," Econometrica, Econometric Society, vol. 52(4), pages 939-61, July.
  7. Arnstein Aassve, 2003. "The impact of economic resources on premarital childbearing and subsequent marriage among young American women," Demography, Springer, vol. 40(1), pages 105-126, February.
  8. Robert J. Willis, 1999. "A Theory of Out-of-Wedlock Childbearing," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages S33-S64, December.
  9. Pau Baizán & Arnstein Aassve & Francesco C. Billari, 2002. "Institutional arrangements and life course outcomes: the interrelations between cohabitation, marriage and first birth in Germany and Sweden," MPIDR Working Papers WP-2002-026, Max Planck Institute for Demographic Research, Rostock, Germany.
  10. Michael J. Brien & Lee A. Hillard & Linda Waite, . "Cohabitation, Marriage, and Non-Fertility," University of Chicago - Population Research Center 97-5, Chicago - Population Research Center.
  11. Lillard, Lee A., 1993. "Simultaneous equations for hazards : Marriage duration and fertility timing," Journal of Econometrics, Elsevier, vol. 56(1-2), pages 189-217, March.
  12. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
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Citations

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Cited by:
  1. Andriopoulou, Eirini & Tsakloglou, Panagiotis, 2011. "The determinants of poverty transitions in Europe and the role of duration dependence," MPRA Paper 30659, University Library of Munich, Germany.
  2. repec:ese:iserwp:2005-26 is not listed on IDEAS
  3. John Hobcraft, 2008. "The timing and partnership context of becoming a parent," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 19(34), pages 1281-1322, July.
  4. Anna Matysiak & Daniele Vignoli, 2011. "Different women’s employment and fertility behaviours in similar institutional settings: Evidence from Italy and Poland," Working Papers 41, Institute of Statistics and Demography, Warsaw School of Economics.
  5. Arnstein Aassve & Simon Burgess & Matt Dickson & Carol Propper, 2006. "Modelling poverty by not modelling poverty: An application of a simultaneous hazards approach to the UK," CASE Papers case106, Centre for Analysis of Social Exclusion, LSE.
  6. Biewen, Martin, 2004. "Measuring State Dependence in Individual Poverty Status: Are There Feedback Effects to Employment Decisions and Household Composition?," IZA Discussion Papers 1138, Institute for the Study of Labor (IZA).
  7. Niedergesäss, Markus, 2013. "Employment, partnership and childbearing decisions of German women and men: A simultaneous hazards approach," University of Tuebingen Working Papers in Economics and Finance 51, University of Tuebingen, Faculty of Economics and Social Sciences.
  8. Fiona Steele & Constantinos Kallis & Harvey Goldstein & Heather Joshi, 2005. "The relationship between childbearing and transitions from marriage and cohabitation in Britain," Demography, Springer, vol. 42(4), pages 647-673, November.
  9. Elizabeth Thomson & Maria Winkler-Dworak & Martin Spielauer & Alexia Prskawetz, 2012. "Union Instability as an Engine of Fertility? A Microsimulation Model for France," Demography, Springer, vol. 49(1), pages 175-195, February.
  10. Nicoletta Balbo & Nicola Barban & Melinda Mills, 2013. "Friend and peer effects on entry into marriage and parenthood: A multiprocess approach," Working Papers 056, "Carlo F. Dondena" Centre for Research on Social Dynamics (DONDENA), Università Commerciale Luigi Bocconi.
  11. Tiziana Leone & Andrew Hinde, 2007. "Fertility and union dissolution in Brazil: an example of multi-process modelling using the Demographic and Health Survey calendar data," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 17(7), pages 157-180, October.

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