In this paper we study the relationship between fertility behavior and the process of marriage duration. The potential endogeneity of fertility on marriage behavior is taken into account by modeling fertility and divorce jointly. We apply the ”timing-of-event” method (Abbring & van den Berg (2002)) to identify the causal effect of births on the divorce hazard. We show that couples who are less prone to divorce are more prone to invest in children, and therefore one might (mistakenly) conclude that children tend to stabilize marriages. However, when correcting for the selectivity bias arising from the fertility decision, we conclude that children themselves do not have a positive effect on marriage duration.
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Paper provided by University of Aarhus, Aarhus School of Business, Department of Economics in its series Working Papers with number
03-4.
Length: 28 pages Date of creation: 01 Feb 2003 Date of revision: Handle: RePEc:hhs:aareco:2003_004
Note: Forthcoming in Journal of Population Economics Contact details of provider: Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark Phone: +45 89 486396 Fax: +45 8615 5175 Web page: http://www.asb.dk/departments/nat.aspx More information through EDIRC
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