Children and Women's Participation Dynamics: Direct and Indirect Effects

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Children and Women's Participation Dynamics: Direct and Indirect Effects

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Voicu, Alexandru () (IZA Bonn)
Buddelmeyer, Hielke (IZA Bonn)

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Alexandru Voicu

Abstract

Children affect the after-birth labor force participation of women in two ways. Directly, the time spent in child-care reduces the labor market effort. Time spent out of the labor market while on maternity leave alters women’s participation experience and indirectly affects subsequent participation behavior. This paper proposes a model that disentangles the direct and indirect effect of children on women’s labor force participation, and evaluates their relative importance. Distinguishing these two effects is important for effective policy design. Participation decisions for three levels of labor market involvement are represented by a multivariate probit model. The estimation is performed using Markov chain Monte Carlo methods. The indirect effect is more important and grows with the length of the interruption. The direct effect wanes with the age of the child.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 729.

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Length: 34 pages
Date of creation: Feb 2003
Date of revision:
Handle: RePEc:iza:izadps:dp729

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Find related papers by JEL classification:
C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Bayesian Analysis
C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Statistical Simulation Methods
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

This paper has been announced in the following NEP Reports:

NEP-ALL-2003-03-03 (All new papers)
NEP-DCM-2003-03-03 (Discrete Choice Models)
NEP-LAB-2003-03-03 (Labour Economics)
NEP-MAC-2003-03-03 (Macroeconomics)

References listed on IDEAS
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Other versions:
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Cited by:
(explanations, 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.)

Katrin Sommerfeld, 2008. "Older Babies - More Active Mothers?: How Maternal Labor Supply Changes as the Child Grows," SOEPpapers 143, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
Elena Bardasi & Chiara Monfardini, 2005. "Women's Employment, Children and Transition An Empirical Analysis on Poland," CHILD Working Papers wp07_05, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY. [Downloadable!]
Other versions:
- E. Bardasi & C. Monfardini, 2004. "Women's Employment, Children and Transition: An Empirical Analysis on Poland," Working Papers 523, Dipartimento Scienze Economiche, Universita' di Bologna. [Downloadable!]
- Elena Bardasi & Chiara Monfardini, 2004. "Women's Employment, Children and Transition: An Empirical Analysis on Poland," Eastward Enlargement of the Euro-zone Working Papers wp25, Free University Berlin, Jean Monnet Centre of Excellence, revised 15 Oct 2004. [Downloadable!]
Troske, Kenneth R. & Voicu, Alexandru, 2004. "Joint Estimation of Sequential Labor Force Participation and Fertility Decisions Using Markov Chain Monte Carlo Techniques," IZA Discussion Papers 1251, Institute for the Study of Labor (IZA). [Downloadable!]
Other versions:
- Hielke Buddelmeyer & Kenneth Troske, 2004. "Joint estimation of sequential labor force participation and fertility decisions using Markov chain Monte Carlo techniques," Econometric Society 2004 North American Winter Meetings 334, Econometric Society.
Pierre-Carl Michaud & Konstantinos Tatsiramos, 2005. "Employment Dynamics of Married Women in Europe," IZA Discussion Papers 1706, Institute for the Study of Labor (IZA). [Downloadable!]
Other versions:
- Pierre-Carl Michaud & Konstantinos Tatsiramos, 2005. "Employment Dynamics of Married Women in Europe," Working Papers 273, RAND Corporation Publications Department. [Downloadable!]

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