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Employment, family union, and childbearing decisions in Great Britain

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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
    DOI: 10.4054/MPIDR-WP-2003-027
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    References listed on IDEAS

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    JEL classification:

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

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