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Entry into motherhood: The effect of wages

  • Ariza, Alfredo
  • Ugidos Olazabal, Arantza

Using the ECHP, we explored the determinants of having the first child in Spain. Our main goal was to study the relation between female wages and the decision to enter motherhood. Since the offered wage of non-working women is not observed, we estimate it and impute a potential wage to each woman (working and non-working). This potential wage enable us to investigate the effect of wages (the opportunity cost of time non-worked and dedicated to children) on the decision to have the first child, for both workers and non-workers. Contrary to previous results, we found that female wages are positively related to the likelihood of having the first child. This result suggests that the income effect overcomes the substitution effect when non-participants opportunity cost is also taken into account.

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File URL: http://hdl.handle.net/10810/6709
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Paper provided by University of the Basque Country - Department of Foundations of Economic Analysis II in its series DFAEII Working Papers with number 2007-03.

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Date of creation: Apr 2007
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Handle: RePEc:ehu:dfaeii:200703
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Order Information: Postal: Dpto. de Fundamentos del Análisis Económico II, = Facultad de CC. Económicas y Empresariales, Universidad del País Vasco, Avda. Lehendakari Aguirre 83, 48015 Bilbao, Spain
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  1. Stephen Nickell, 1997. "Unemployment and Labor Market Rigidities: Europe versus North America," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 55-74, Summer.
  2. Willis, Robert J, 1973. "A New Approach to the Economic Theory of Fertility Behavior," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages S14-64, Part II, .
  3. James R. Walker, 2002. "A Comment on Ali Tasiran's `Wage and income effects on the timing and spacing of births in Sweden and in the United States'," Journal of Population Economics, Springer, vol. 15(4), pages 773-782.
  4. Butz, William P & Ward, Michael P, 1979. "The Emergence of Countercyclical U.S. Fertility," American Economic Review, American Economic Association, vol. 69(3), pages 318-28, June.
  5. N. Ryder, 1964. "The process of demographic translation," Demography, Springer, vol. 1(1), pages 74-82, March.
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