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Early Child Development and Maternal Labor Force Participation: Using Handedness as an Instrument

Author

Listed:
  • Frijters, Paul

    (London School of Economics)

  • Johnston, David W.

    (Monash University)

  • Shah, Manisha

    (University of California, Los Angeles)

  • Shields, Michael A.

    (Monash University)

Abstract

We estimate the effect of early child development on maternal labor force participation using data from teacher assessments. Mothers might react to having a poorly developing child by dropping out of the formal labor force in order to spend more time with their child, or they could potentially increase their labor supply to be able to provide the funds for better education and health resources. Which action dominates is therefore the empirical question we seek to answer in this paper. Importantly, we control for the potential endogeneity of child development by using an instrumental variables approach, uniquely exploiting exogenous variation in child development associated with child handedness. We find that having a poorly developing young child reduces the probability that a mother will participate in the labor market by about 25 percentage points.

Suggested Citation

  • Frijters, Paul & Johnston, David W. & Shah, Manisha & Shields, Michael A., 2008. "Early Child Development and Maternal Labor Force Participation: Using Handedness as an Instrument," IZA Discussion Papers 3537, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp3537
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    References listed on IDEAS

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    1. Christopher S. Ruebeck & Joseph E. Harrington, Jr & Robert Moffitt, 1997. "Handedness and Earnings," Economics Working Paper Archive 533, The Johns Hopkins University,Department of Economics, revised Jun 2004.
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    3. Christopher J. Ruhm, 2004. "Parental Employment and Child Cognitive Development," Journal of Human Resources, University of Wisconsin Press, vol. 39(1).
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    5. Kevin Denny & Vincent O’ Sullivan, 2007. "The Economic Consequences of Being Left-Handed: Some Sinister Results," Journal of Human Resources, University of Wisconsin Press, vol. 42(2).
    6. Hope Corman & Kelly Noonan & Nancy E. Reichman, 2005. "Mother's Labor Supply in Fragile Families: The Role of Child Health," Eastern Economic Journal, Eastern Economic Association, vol. 31(4), pages 601-616, Fall.
    7. Paul Gregg & Elizabeth Washbrook & Carol Propper & Simon Burgess, 2005. "The Effects of a Mother's Return to Work Decision on Child Development in the UK," Economic Journal, Royal Economic Society, vol. 115(501), pages 48-80, February.
    8. Kevin Denny & Vincent O'Sullivan, 2004. "The economic consequences of being left-handed : some sinister results (version 2.0)," Working Papers 200422, School of Economics, University College Dublin.
    9. Elizabeth T. Powers, 2001. "New Estimates of the Impact of Child Disability on Maternal Employment," American Economic Review, American Economic Association, vol. 91(2), pages 135-139, May.
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    11. Johnston, David W. & Shah, Manisha & Shields, Michael A., 2007. "Handedness, Time Use and Early Childhood Development," IZA Discussion Papers 2752, Institute of Labor Economics (IZA).
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    Cited by:

    1. Judith Kabajulizi, 2013. "Macroeconomic Implications Of Health Sector Reforms In Uganda: A Computable General Equilibrium Analysis," EcoMod2013 5158, EcoMod.

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    More about this item

    Keywords

    handedness; child development; maternal labor force participation;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models

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