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Fertility and the Human Capital Loss of Non‐Participation

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  • Christian Belzil
  • Philip Hergel

Abstract

Female earnings function parameters are estimated jointly with interruption incidence and fertility decisions. We pay particular attention to the return to experience and the human capital loss parameter when women are allowed to self‐select into various possible combinations of interruption and fertility outcomes. We find that ignoring endogenous fertility decisions may seriously bias the effect of non‐employment spell lengths on female earnings, as well as the return to experience. To a large extent, the negative relationship between female earnings and non‐employment spell length, that is widely documented in the earlier literature, is the result of a misspecification of the earnings functions.

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  • Christian Belzil & Philip Hergel, 1999. "Fertility and the Human Capital Loss of Non‐Participation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(2), pages 153-166, May.
    • Handle: RePEc:bla:obuest:v:61:y:1999:i:2:p:153-166
    DOI: 10.1111/1468-0084.00123
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    Cited by:

    1. Zhang, Xuelin, 2008. "The Post-childbirth Employment of Canadian Mothers and the Earnings Trajectories of Their Continuously Employed Counterparts, 1983 to 2004," Analytical Studies Branch Research Paper Series 2008314e, Statistics Canada, Analytical Studies Branch.
    2. Zhang, Xuelin, 2008. "Emploi des meres canadiennes apres la naissance d'un enfant et trajectoires des gains de leurs homologues occupees de facon continue, 1983 a 2004," Direction des études analytiques : documents de recherche 2008314f, Statistics Canada, Direction des études analytiques.

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