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Fertility and Family Labor Supply

Author

Listed:
  • Jakobsen, Katrine
  • Jørgensen, Thomas H.
  • Low, Hamish

Abstract

We study how fertility decisions interact with labor supply of men and women. First, we use longitudinal Danish register data and tax reforms to show that increases in wages of women decrease fertility while increases in wages of men increase fertility. Second, we estimate a life-cycle model to quantify the importance of fertility adjustments for labor supply and long-run gender inequality. Wage elasticities of women are more than 10\% lower if fertility cannot be adjusted in our model. Finally, we show that human capital depreciation around childbirth is an important driver of the long-run gender wage gap.

Suggested Citation

  • Jakobsen, Katrine & Jørgensen, Thomas H. & Low, Hamish, 2024. "Fertility and Family Labor Supply," CEPR Discussion Papers 19713, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:19713
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    File URL: https://cepr.org/publications/DP19713
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    More about this item

    Keywords

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    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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