Little is known about why cohabiting couples have fewer children than married couples. We explore the factors that explain the difference in fertility between these two groups using a switching regression analysis, which enables us to quantify the contribution of different factors through a decomposition of the difference. We find that married couples have more children than cohabiting couples primarily because marriage provides stronger incentives for specialization in household production. Unobserved self-selection plays a less important role.
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number
3245.
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