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The Social Multiplier and Labour Market Participation of Mothers

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  • Maurin, Eric

    ()
    (Paris School of Economics)

  • Moschion, Julie

    ()
    (Melbourne Institute of Applied Economic and Social Research)

Abstract

A mother’s decision to participate in the labour market is correlated with those of the other mothers living in the same neighbourhood. This paper studies the extent to which this is causal. An identification problem exists because mothers with similar characteristics are often observed living in close proximity. Our identifying strategy uses instrumental variables. Specifically, the sex of the eldest siblings of the other mothers living in the neighbourhood is used as an instrument to identify the effect of neighbours’ participation in the labour market on own participation. The IV estimate suggests a strong elasticity of own participation to neighbours participation. Interestingly enough, estimates using the quarters of birth of the children of the other mothers living in the neighbourhood as instruments are as large as estimates using the sex-mix instruments. We provide additional evidence showing that the random fertility shocks that affect the timing of births and the participation in the labour market of a mother, affect the participation in the labour market of the other mothers in the neighbourhood too.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2513.

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Length: 47 pages
Date of creation: Dec 2006
Date of revision:
Publication status: published in: American Economic Journal : Applied Economics, 2009, 1(1), 251-272
Handle: RePEc:iza:izadps:dp2513

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Keywords: neighbourhood effects; female participation in the labour market; social multiplier;

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References

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  1. Goux, Dominique & Maurin, Eric, 2005. "The effect of overcrowded housing on children's performance at school," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 797-819, June.
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Cited by:
  1. Francesco Drago & Roberto Galbiati, 2012. "Indirect Effects of a Policy Altering Criminal Behavior: Evidence from the Italian Prison Experiment," American Economic Journal: Applied Economics, American Economic Association, vol. 4(2), pages 199-218, April.
  2. Claudia Olivetti & Barbara Petrongolo, . "Gender gaps across countries and skills: Demand, supply and the industry structure," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics.
  3. Yuyu Chen & Ginger Zhe Jin & Yang Yue, 2010. "Peer Migration in China," NBER Working Papers 15671, National Bureau of Economic Research, Inc.
  4. Angelov, Nikolay & Karimi, Arizo, 2012. "Mothers’ income recovery after childbearing," Working Paper Series 2012:20, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  5. Gordon B. Dahl & Katrine Vellesen Loken & Magne Mogstad, 2013. "Peer Effects in Program Participation," CESifo Working Paper Series 4349, CESifo Group Munich.
  6. Hirvonen, Lalaina, 2009. "The Effect of Children on Earnings Using Exogenous Variation in Family Size: Swedish Evidence," Working Paper Series 2/2009, Swedish Institute for Social Research.
  7. Vendrik Maarten & Cörvers Frank, 2009. "Male and female labour force participation: the role of dynamic adjustments to changes in labour demand, government policies and autonomous trends," Research Memorandum 036, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  8. Bruce Sacerdote & James Feyrer, 2008. "Will the Stork Return to Europe and Japan? Understanding Fertility Within Developed Nations," NBER Working Papers 14114, National Bureau of Economic Research, Inc.
  9. Gabriel Martinez, 2010. "The Idea of Economics in a University," Working Papers 1002, Ave Maria University, Department of Economics.
  10. Vendrik Maarten & Cörvers Frank, 2009. "Male and female labour force participation: the role of dynamic adjustments to changes in labour demand, government policies and autonomous trends," ROA Research Memorandum 013, Maastricht University, Research Centre for Education and the Labour Market (ROA).
  11. Kasey Buckles & Daniel M. Hungerman, 2008. "Season of Birth and Later Outcomes: Old Questions, New Answers," NBER Working Papers 14573, National Bureau of Economic Research, Inc.

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