Early Child Development and Maternal Labor Force Participation: Using Handedness as an Instrument
AbstractWe 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.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3537.
Length: 27 pages
Date of creation: Jun 2008
Date of revision:
Publication status: published in: American Economic Journal: Applied Economics, 2009, 1(3), 97–110
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Other versions of this item:
- Paul Frijters & David W. Johnston & Manisha Shah & Michael A. Shields, 2008. "Early Child Development and Maternal Labor Force Participation: Using Handedness as an Instrument," NCER Working Paper Series 27, National Centre for Econometric Research.
- 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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