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Mothers’ Income Recovery after Childbearing

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  • Angelov, Nikolay

    ()
    (Uppsala Center for Labor Studies)

  • Karimi, Arizo

    ()
    (Uppsala Center for Labor Studies)

Abstract

This paper examines the time profile of the effect of fertility on female labour earnings with respect to time since birth. To address endogeneity of fertility to labour income, we use the same-sex instrument (Angrist and Evans, 1998) in a novel way on a panel data set to uncover the time profile of the fertility effect. Our OLS estimates suggest that the largest impact takes place during the child’s first years of life, and then gradually diminishes over the lifecycle, with full recovery of income 15 years after birth. Our IV estimates support this finding, but suggest a faster recovery of earnings, although the estimates are now less precise. We are also able to reproduce this finding with a one-period cross-section and disaggregating the sample by years since third birth to estimate the time profile.

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File URL: http://www.ucls.nek.uu.se/digitalAssets/138/138560_201219_final.pdf
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Bibliographic Info

Paper provided by Uppsala University, Department of Economics in its series Working Paper Series, Center for Labor Studies with number 2012:19.

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Length: 34 pages
Date of creation: 20 Nov 2012
Date of revision:
Handle: RePEc:hhs:uulswp:2012_019

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Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
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Web page: http://www.nek.uu.se/
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Keywords: Fertility; female labour supply; same-sex siblings; instrumental variables;

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  1. James P. Vere, 2011. "Fertility and parents' labour supply: new evidence from US census data," Oxford Economic Papers, Oxford University Press, vol. 63(2), pages 211-231, April.
  2. Fuchs, Victor R, 1989. "Women's Quest for Economic Equality," Journal of Economic Perspectives, American Economic Association, vol. 3(1), pages 25-41, Winter.
  3. Eric Maurin & Julie Moschion, 2009. "The Social Multiplier and Labor Market Participation of Mothers," American Economic Journal: Applied Economics, American Economic Association, vol. 1(1), pages 251-72, January.
  4. Goldin, Claudia & Polachek, Solomon, 1987. "Residual Differences by Sex: Perspectives on the Gender Gap in Earnings," American Economic Review, American Economic Association, vol. 77(2), pages 143-51, May.
  5. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-75, March.
  6. Guillermo Cruces & Sebastian Galiani, 2005. "Fertility and Female Labor Supply in Latin America: New Causal Evidence," Labor and Demography 0511011, EconWPA.
  7. Joshua D. Angrist & William N. Evans, 1996. "Children and Their Parents' Labor Supply: Evidence from Exogenous Variation in Family Size," NBER Working Papers 5778, National Bureau of Economic Research, Inc.
  8. Kenneth I. Wolpin & Mark R. Rosenzweig, 2000. "Natural "Natural Experiments" in Economics," Journal of Economic Literature, American Economic Association, vol. 38(4), pages 827-874, December.
  9. Joyce P. Jacobsen & James Wishart Pearce III & Joshua L. Rosenbloom, 1999. "The Effects of Childbearing on Married Women's Labor Supply and Earnings: Using Twin Births as a Natural Experiment," Journal of Human Resources, University of Wisconsin Press, vol. 34(3), pages 449-474.
  10. repec:ese:iserwp:2001-19 is not listed on IDEAS
  11. Gronau, Reuben, 1988. "Sex-Related Wage Differentials and Women's Interrupted Labor Careers--The Chicken or the Egg," Journal of Labor Economics, University of Chicago Press, vol. 6(3), pages 277-301, July.
  12. Bronars, Stephen G & Grogger, Jeff, 1994. "The Economic Consequences of Unwed Motherhood: Using Twin Births as a Natural Experiment," American Economic Review, American Economic Association, vol. 84(5), pages 1141-56, December.
  13. Browning, Martin, 1992. "Children and Household Economic Behavior," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1434-75, September.
  14. Concetta Rondinelli & Roberta Zizza, 2010. "(Non)persistent effects of fertility on female labour supply," Temi di discussione (Economic working papers) 783, Bank of Italy, Economic Research and International Relations Area.
  15. Huber, Martin, 2012. "Statistical verification of a natural "natural experiment": Tests and sensitivity checks for the sibling sex ratio instrument," Economics Working Paper Series 1219, University of St. Gallen, School of Economics and Political Science.
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