A Panel Data Analysis of Racial/Ethnic Differences in Married Women's Labor Supply
AbstractWe study differences in life-cycle labor supply among white, black, and Hispanic women, focusing on the interaction between race/ethnicity, education, and fertility. We use panel data that capture women's labor market and fertility histories and an econometric model that accounts for the endogeneity of labor market and fertility decisions, the heterogeneity of the effects of children and their correlation with the fertility decisions, and the correlation of sequential labor market decisions. Our results show an intricate connection between race/ethnicity, education, and fertility as determinants of women's life-cycle labor supply. For all levels of education, white women have fewer children, have the first birth later in life, and space subsequent births more closely together. The level of labor market involvement before the first birth is highest for white women and lowest for Hispanic women, but children reverse the relationship between race/ethnicity and level of labor market involvement. The negative effects of children are largest for white women and smallest for Hispanic women, and as a result, among women with two children, black and Hispanic women work more than white women. Racial/ethnic differences in fertility decisions, pre-natal labor supply, and labor supply responsiveness to children decline with the level education. Educational differences contribute to the racial/ethnic differentials in labor supply. White women have the highest levels of education and Hispanic women have the lowest levels of education. Other things equal, women with higher education have fewer children, have the first birth later in life, space subsequent births more closely together, work more before the birth of the first child, but face larger negative effects of children on their level of labor market involvement.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5729.
Length: 47 pages
Date of creation: May 2011
Date of revision:
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Find related papers by JEL classification:
- C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
- C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Yoon, Y.H. & Waite, L.J., 1993. "Converging Employment Patterns of Black, White, and Hispanic Women: Return to Work After First Birth," Papers 93-36, RAND - Labor and Population Program.
- Fitzenberger, Bernd & Sommerfeld, Katrin & Steffes, Susanne, 2013.
"Causal effects on employment after first birth — A dynamic treatment approach,"
Elsevier, vol. 25(C), pages 49-62.
- Bernd Fitzenberger & Katrin Sommerfeld & Susanne Steffes, 2013. "Causal Effects on Employment after First Birth: A Dynamic Treatment Approach," SOEPpapers on Multidisciplinary Panel Data Research 576, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Sommerfeld K. & Steffes S. & Fitzenberger B., 2013. "Causal effects on employment after first birth - A dynamic treatment approach -," Research Memorandum 031, Maastricht : GSBE, Graduate School of Business and Economics.
- Sommerfeld K. & Fitzenberger B. & Steffes S., 2013. "Causal effects on employment after first birth - A dynamic treatment approach -," Research Memoranda 010, Maastricht : ROA, Research Centre for Education and the Labour Market.
- Fitzenberger, Bernd & Sommerfeld, Katrin & Steffes, Susanne, 2013. "Causal Effects on Employment after First Birth: A Dynamic Treatment Approach," IZA Discussion Papers 7438, Institute for the Study of Labor (IZA).
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