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Employment, family union, and childbearing decisions in Great Britain

Author

Listed:
  • Arnstein Aassve

    (Max Planck Institute for Demographic Research, Rostock, Germany)

  • Simon Burgess
  • Carol Propper
  • Matt Dickson

Abstract

The paper investigates the relationship of work and family life in Britain. Using hazard regression techniques we estimate a five-equation model, which includes birth events, union formation, union dissolution, employment and non-employment events. The model allows for unobserved heterogeneity that is correlated across all five equations. We use information from the British Household Panel Survey, including the retrospective histories concerning work, union, and child bearing, to estimate this model. We obtain well-defined parameter estimates, including significant and correlated unobserved heterogeneity. We find that transitions in and out of employment for men are relatively independent of other transitions. In contrast, there are strong links between female employment, having children and union formation. By undertaking a detailed micro simulations analysis, we show that different levels of female labour force participation do not necessarily lead to large changes in fertility levels. Changes in union formation and fertility levels, on the other hand, do have a significant impact on employment rates.

Suggested Citation

  • Arnstein Aassve & Simon Burgess & Carol Propper & Matt Dickson, 2003. "Employment, family union, and childbearing decisions in Great Britain," MPIDR Working Papers WP-2003-027, Max Planck Institute for Demographic Research, Rostock, Germany.
  • Handle: RePEc:dem:wpaper:wp-2003-027
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    File URL: http://www.demogr.mpg.de/papers/working/wp-2003-027.pdf
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    References listed on IDEAS

    as
    1. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
    2. Arnstein Aassve, 2003. "The impact of economic resources on premarital childbearing and subsequent marriage among young American women," Demography, Springer;Population Association of America (PAA), vol. 40(1), pages 105-126, February.
    3. Newman, John L & McCulloch, Charles E, 1984. "A Hazard Rate Approach to the Timing of Births," Econometrica, Econometric Society, vol. 52(4), pages 939-961, July.
    4. Arnstein Aassve & Simon Burgess & Andrew Chesher & Carol Propper, 2002. "Transitions from home to marriage of young Americans," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 17(1), pages 1-23.
    5. Wolfe, Barbara & Wilson, Kathryn & Haveman, Robert, 2001. "The role of economic incentives in teenage nonmarital childbearing choices," Journal of Public Economics, Elsevier, vol. 81(3), pages 473-511, September.
    6. Lee Lillard & Linda Waite, 1993. "A joint model of marital childbearing and marital disruption," Demography, Springer;Population Association of America (PAA), vol. 30(4), pages 653-681, November.
    7. Lillard, Lee A., 1993. "Simultaneous equations for hazards : Marriage duration and fertility timing," Journal of Econometrics, Elsevier, vol. 56(1-2), pages 189-217, March.
    8. Michael J. Brien, 1997. "Racial Differences in Marriage and the Role of Marriage Markets," Journal of Human Resources, University of Wisconsin Press, vol. 32(4), pages 741-778.
    9. Michael J. Brien & Lee A. Hillard & Linda Waite, "undated". "Cohabitation, Marriage, and Non-Fertility," University of Chicago - Population Research Center 97-5, Chicago - Population Research Center.
    10. Robert J. Willis, 1999. "A Theory of Out-of-Wedlock Childbearing," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages 33-64, December.
    11. Dawn Upchurch & Lee Lillard & Constantijn Panis, 2002. "Nonmarital childbearing: Influences of education, marriage, and fertility," Demography, Springer;Population Association of America (PAA), vol. 39(2), pages 311-329, May.
    12. Pau Baizán & Arnstein Aassve & Francesco C. Billari, 2002. "Institutional arrangements and life course outcomes: the interrelations between cohabitation, marriage and first birth in Germany and Sweden," MPIDR Working Papers WP-2002-026, Max Planck Institute for Demographic Research, Rostock, Germany.
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    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • Z0 - Other Special Topics - - General

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