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Self-Employment among Women: Do Children Matter More Than We Previously Thought?

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  • Anastasia Semykina

    (Florida State University, Department of Economics)

Abstract

This paper presents an estimation approach that addresses the problems of sample selection and endogeneity of fertility decisions when estimating the effect of young children on women's self-employment. Using data from the National Longitudinal Survey of Youth 1979, 1982-2006, we find that ignoring self-selection and endogeneity leads to underestimating the effect of young children. Once both sources of biases are accounted for, the estimated effect of young children more than doubles when compared to uncorrected results. This finding is robust to the several changes in specification and to the use of a different data set.

Suggested Citation

  • Anastasia Semykina, 2016. "Self-Employment among Women: Do Children Matter More Than We Previously Thought?," Working Papers wp2016_07_02, Department of Economics, Florida State University.
    • Handle: RePEc:fsu:wpaper:wp2016_07_02
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    Cited by:

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    2. Hans Lööf & Ingrid Viklund‐Ros, 2020. "Board of directors and export spillovers: What is the impact on extensive margins of trade?," The World Economy, Wiley Blackwell, vol. 43(5), pages 1188-1215, May.
    3. Lin Xiu & Morley Gunderson, 2021. "Does an Entrepreneurial Career Pay for Women in China?," British Journal of Industrial Relations, London School of Economics, vol. 59(1), pages 167-190, March.
    4. Mañez, J.A. & Love, J.H., 2020. "Quantifying sunk costs and learning effects in R&D persistence," Research Policy, Elsevier, vol. 49(7).
    5. Teguh Budiman & Yayan Satyakti & Erie Febrian, 2021. "Islamic Bank Sustainability: An Econometric Approach," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 11(2), pages 141-159, February.
    6. Baum, Christopher F. & Lööf, Hans & Stephan, Andreas & Viklund-Ros, Ingrid, 2022. "Innovation by start-up firms: The role of the board of directors for knowledge spillovers," Research Policy, Elsevier, vol. 51(1).
    7. Christopher F. Baum & Hans Lööf & Andreas Stephan & Ingrid Viklund-Ros, 2019. "Innovation by start-up firms: The influence of the board of directors for knowledge spillovers," Boston College Working Papers in Economics 988, Boston College Department of Economics, revised 31 Aug 2021.
    8. Yu, Shuye & Postepska, Agnieszka, 2020. "Flexible Jobs Make Parents Happier: Evidence from Australia," IZA Discussion Papers 13700, Institute of Labor Economics (IZA).
    9. Fanfani Bernardo & Passerini Filippo, 2024. "Do Alternative Work Arrangements Substitute Standard Employment? Evidence from Worker-level Data," Working papers 085, Department of Economics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino.
    10. Dolores Añon Higón & Juan A. Daniel Bonvin, 2023. "Do digitalization spurs SMEs’ participation in foreign markets?," Working Papers 2307, Department of Applied Economics II, Universidad de Valencia.
    11. Bernardo Fanfani & Filippo Passerini, 2024. "Do Alternative Work Arrangements Substitute Standard Employment? Evidence from Worker-Level Data," Working Papers wp1190, Dipartimento Scienze Economiche, Universita' di Bologna.

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    More about this item

    Keywords

    self-employment; fertility; endogeneity; sample selection;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

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