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Wage premium of fatherhood and labor supply in Japan

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  • Yukawa, Shiho
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    Abstract

    Using data from the Japanese Panel Survey of Consumers (JPSC)1994-2006, we examine the effect of child birth on fathers’ wage rates and labor supply in Japan. We also compare effects of fatherhood among different cohorts by dividing the JPSC sample into two birth year cohorts (born in or before 1960 and born after 1960). We find that birth of child significantly increase hourly wage rates by 2.8 percents and annual work by 65 hours. Comparing with results in the U.S. (Lundberg and Rose 2002), the effect of child birth on labor supply is large but the effect on wage rates are relatively small in Japan. We also find that child birth have different impact on labor market outcome between the early and the later cohorts. In the early cohort, birth of child significantly increases wage rates but has no significant effect on labor supply. On the contrary, birth of child does not increases wage rates but significantly increases labor supply in the later cohort. Finally, we examine how gender difference of children matters. Although the impact of gender difference is not so large, the effect of birth of sons is larger than the effect of birth of daughters.

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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 33049.

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    Date of creation: 2011
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    Handle: RePEc:pra:mprapa:33049

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    Keywords: child birth; labor supply; wage premium;

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    1. Yuji Genda & Ayako Kondo & Souichi Ohta, 2010. "Long-Term Effects of a Recession at Labor Market Entry in Japan and the United States," Journal of Human Resources, University of Wisconsin Press, vol. 45(1).
    2. Kondo, Ayako, 2007. "Does the first job really matter? State dependency in employment status in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 21(3), pages 379-402, September.
    3. Cornwell, Christopher & Rupert, Peter, 1997. "Unobservable Individual Effects, Marriage and the Earnings of Young Men," Economic Inquiry, Western Economic Association International, vol. 35(2), pages 285-94, April.
    4. Joni Hersch & Leslie S. Stratton, 2000. "Household specialization and the male marriage wage premium," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 54(1), pages 78-94, October.
    5. Lundberg, Shelly & Rose, Elaina, 2000. "Parenthood and the earnings of married men and women," Labour Economics, Elsevier, vol. 7(6), pages 689-710, November.
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