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The Timing of Births: A Marriage Market Analysis

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  • Caucutt, Elizabeth M.
  • Guner, Nezih
  • Knowles, John

Abstract

We argue that one of the key channels linking the labor and marriage markets is the decision of when to become a parent. We develop an equilibrium model of marriage, divorce, and human capital accumulation that allows for differential timing of fertility. We calibrate the model to US panel data and analyze the effects of raising women’s wages relative to men’s, and increasing the rate of return to experience for women. We find that an increase in the returns to experience for women is causes an increase in fraction of children born to women over age 30, and that raising women’s wages reduces marriage rates.

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Paper provided by Universidad Carlos III de Madrid in its series Open Access publications from Universidad Carlos III de Madrid with number info:hdl:10016/5111.

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Handle: RePEc:ner:carlos:info:hdl:10016/5111

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  1. Shimer, R. & Smith, L., 1998. "Assortive Matching and Search," Papers 98-09, Michigan - Center for Research on Economic & Social Theory.
  2. Juan Carlos Conesa, 2002. "Educational attainment and timing of fertility decisions," Working Papers in Economics 78, Universitat de Barcelona. Espai de Recerca en Economia.
  3. Jeremy Greenwood & Nezih Guner & John Knowles, . "More on Marriage, Fertility, and the Distribution of Inocome," Penn CARESS Working Papers 65f9ffed93b3a872de23c94c2, Penn Economics Department.
  4. Andres Erosa & Luisa Fuster & Diego Restuccia, 2009. "A General Equilibrium Analysis of Parental Leave Policies," Working Papers tecipa-385, University of Toronto, Department of Economics.
  5. Hotz, V Joseph & Miller, Robert A, 1988. "An Empirical Analysis of Life Cycle Fertility and Female Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 91-118, January.
  6. Gary S. Becker, 1974. "A Theory of Marriage: Part II," NBER Chapters, in: Marriage, Family, Human Capital, and Fertility, pages 11-26 National Bureau of Economic Research, Inc.
  7. Raquel Fernandez & Richard Rogerson, 2000. "Sorting and Long-Run Inequality," NBER Working Papers 7508, National Bureau of Economic Research, Inc.
  8. Jonathan Gruber, 2000. "Is Making Divorce Easier Bad for Children? The Long Run Implications of Unilateral Divorce," NBER Working Papers 7968, National Bureau of Economic Research, Inc.
  9. Hector Chade & Gustavo Ventura, 2001. "Taxes and Marriage: A Two-Sided Search Analysis," Working Papers 36, Universidad de San Andres, Departamento de Economia, revised Aug 2001.
  10. Gunderson, Morley, 1989. "Male-Female Wage Differentials and Policy Responses," Journal of Economic Literature, American Economic Association, vol. 27(1), pages 46-72, March.
  11. Moffitt, Robert, 1984. "The Estimation of a Joint Wage-Hours Labor Supply Model," Journal of Labor Economics, University of Chicago Press, vol. 2(4), pages 550-66, October.
  12. Eckstein, Zvi & Wolpin, Kenneth I, 1989. "Dynamic Labour Force Participation of Married Women and Endogenous Work Experience," Review of Economic Studies, Wiley Blackwell, vol. 56(3), pages 375-90, July.
  13. Altug, Sumru & Miller, Robert A, 1998. "The Effect of Work Experience on Female Wages and Labour Supply," Review of Economic Studies, Wiley Blackwell, vol. 65(1), pages 45-85, January.
  14. Becker, Gary S, 1973. "A Theory of Marriage: Part I," Journal of Political Economy, University of Chicago Press, vol. 81(4), pages 813-46, July-Aug..
  15. Heckman, James J & Walker, James R, 1990. "The Relationship between Wages and Income and the Timing and Spacing of Births: Evidence from Swedish Longitudinal Data," Econometrica, Econometric Society, vol. 58(6), pages 1411-41, November.
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Cited by:
  1. Akbulut, Rahşan, 2011. "Sectoral Changes And The Increase In Women'S Labor Force Participation," Macroeconomic Dynamics, Cambridge University Press, vol. 15(02), pages 240-264, April.
  2. Orazio Attanasio & Hamish Low & Virginia Sanchez-Marcos, 2008. "Explaining Changes in Female Labor Supply in a Life-Cycle Model," American Economic Review, American Economic Association, vol. 98(4), pages 1517-52, September.
  3. Charles H. Mullin & Ping Wang, 2002. "The Timing of Childbearing among Heterogeneous Women in Dynamic General Equilibrium," NBER Working Papers 9231, National Bureau of Economic Research, Inc.
  4. Andrés Erosa & Luisa Fuster & Diego Restuccia, 2002. "Fertility Decisions and Gender Differences in Labor Turnover, Employment, and Wages," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(4), pages 856-891, October.
  5. Bar, Michael & Leukhina, Oksana, 2005. "Accounting for Changes in Labor Force Participation of Married Women: The Case of the U.S. since 1959," MPRA Paper 17264, University Library of Munich, Germany, revised Jun 2009.
  6. Bar, Michael & Leukhina, Oksana, 2011. "On the time allocation of married couples since 1960," Journal of Macroeconomics, Elsevier, vol. 33(4), pages 491-510.
  7. Maury Gittleman, 2011. "Medicaid and Wealth: An Examination Using the NLSY79," Working Papers 448, U.S. Bureau of Labor Statistics.
  8. José María Da Rocha & Luisa Fuster, 2003. "Why are Fertility and Female Participation Rates Positively Correlated across OECD countries?," Working Papers 72, Barcelona Graduate School of Economics.

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