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Why Do Women Wait? Matching, Wage Inequality, and the Incentives for Fertility Delay

Author

Listed:
  • Elizabeth M. Caucutt

    (University of Rochester)

  • Nezih Guner

    (Pennsylvania State University)

  • John Knowles

    (University of Pennsylvania)

Abstract

This paper explores the interaction between wage inequality and the marriage and fertility decisions of young women. We develop an equilibrium search model of marriage, divorce, and investment in children that allows for differential timing of fertility. We show how patterns of fertility timing in U.S. data can be explained by the incentives for fertility delay implied by marriage and labor markets. We find that these incentives help explain both the cross-sectional relationship between women's wages and fertility timing and the changes over the past 40 years in married women's fertility timing and labor supply. (Copyright: Elsevier)

Suggested Citation

  • Elizabeth M. Caucutt & Nezih Guner & John Knowles, 2002. "Why Do Women Wait? Matching, Wage Inequality, and the Incentives for Fertility Delay," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(4), pages 815-855, October.
    • Handle: RePEc:red:issued:v:5:y:2002:i:4:p:815-855
    DOI: 10.1006/redy.2002.0190
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    References listed on IDEAS

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    More about this item

    Keywords

    marriage; fertility; returns to experience;
    All these keywords.

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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