IDEAS home Printed from https://ideas.repec.org/p/frz/wpaper/wp2017_08.rdf.html
   My bibliography  Save this paper

Do Rich Parents Enjoy Children Less?

Author

Listed:
  • Marco Le Moglie
  • Letizia Mencarini
  • Chiara Rapallini

    (Dipartimento di Scienze per l'Economia e l'Impresa)

Abstract

We investigate the role of individual labor income as a moderator of parental subjective well-being trajectories before and after the first childbirth in Germany, a very low fertility country. Analyzing German Socioeconomic Panel Survey data, we found that income matters negatively for parental subjective well-being after childbirth, though with important differences by education and gender. In particular, among better educated parents, the richer see the arrival of a child more negatively. These findings contribute to the debate on the relationship between income and fertility adding information on how parents perceive the birth of a child beyond the strict financial cost of childbearing and raising. Results are discussed in terms of preferences among different groups of parents, costs of children, and work and family balance. Results are robust to potential endogeneity between income and childbirth, as well as for alternative measures of income.

Suggested Citation

  • Marco Le Moglie & Letizia Mencarini & Chiara Rapallini, 2017. "Do Rich Parents Enjoy Children Less?," Working Papers - Economics wp2017_08.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
  • Handle: RePEc:frz:wpaper:wp2017_08.rdf
    as

    Download full text from publisher

    File URL: http://www.disei.unifi.it/upload/sub/pubblicazioni/repec/pdf/wp08_2017.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Peter McDonald, 2000. "Gender Equity in Theories of Fertility Transition," Population and Development Review, The Population Council, Inc., vol. 26(3), pages 427-439, September.
    2. Blanchflower, David G. & Oswald, Andrew J., 2004. "Well-being over time in Britain and the USA," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1359-1386, July.
    3. Hans-Peter Kohler & Letizia Mencarini, 2016. "The Parenthood Happiness Puzzle: An Introduction to Special Issue," European Journal of Population, Springer;European Association for Population Studies, vol. 32(3), pages 327-338, August.
    4. Frey, Bruno S & Stutzer, Alois, 2000. "Happiness, Economy and Institutions," Economic Journal, Royal Economic Society, vol. 110(466), pages 918-938, October.
    5. Di Tella, Rafael & Haisken-De New, John & MacCulloch, Robert, 2010. "Happiness adaptation to income and to status in an individual panel," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 834-852, December.
    6. Oswald, Andrew J, 1997. "Happiness and Economic Performance," Economic Journal, Royal Economic Society, vol. 107(445), pages 1815-1831, November.
    7. Gunnar Andersson, 2000. "The Impact of Labour-Force Participation on Childbearing Behaviour: Pro-Cyclical Fertility in Sweden during the 1980s and the 1990s," European Journal of Population, Springer;European Association for Population Studies, vol. 16(4), pages 293-333, December.
    8. Mikko Myrskylä & Rachel Margolis, 2014. "Happiness: Before and After the Kids," Demography, Springer;Population Association of America (PAA), vol. 51(5), pages 1843-1866, October.
    9. Betsey Stevenson & Justin Wolfers, 2008. "Economic Growth and Subjective Well-Being: Reassessing the Easterlin Paradox," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 39(1 (Spring), pages 1-102.
    10. Clark, Andrew E & Oswald, Andrew J, 1994. "Unhappiness and Unemployment," Economic Journal, Royal Economic Society, vol. 104(424), pages 648-659, May.
    11. Andrew E. Clark & Ed Diener & Yannis Georgellis & Richard E. Lucas, 2008. "Lags And Leads in Life Satisfaction: a Test of the Baseline Hypothesis," Economic Journal, Royal Economic Society, vol. 118(529), pages 222-243, June.
    12. Mihaly Csikszentmihalyi & Jeremy Hunter, 2003. "Happiness in Everyday Life: The Uses of Experience Sampling," Journal of Happiness Studies, Springer, vol. 4(2), pages 185-199, June.
    13. Angela Luci-Greulich & Olivier Thévenon, 2014. "Does Economic Advancement ‘Cause’ a Re-increase in Fertility? An Empirical Analysis for OECD Countries (1960–2007)," European Journal of Population, Springer;European Association for Population Studies, vol. 30(2), pages 187-221, May.
    14. Henriette Engelhardt & Alexia Prskawetz, 2004. "On the Changing Correlation Between Fertility and Female Employment over Space and Time," European Journal of Population, Springer;European Association for Population Studies, vol. 20(1), pages 35-62, March.
    15. Franco Modigliani, 1949. "Fluctuations in the Saving-Income Ratio: A Problem in Economic Forecasting," NBER Chapters, in: Studies in Income and Wealth, Volume 11, pages 369-444, National Bureau of Economic Research, Inc.
    16. Gøsta Esping-Andersen & Francesco C. Billari, 2015. "Re-theorizing Family Demographics," Population and Development Review, The Population Council, Inc., vol. 41(1), pages 1-31, March.
    17. Bruno S. Frey, 2018. "Economics of Happiness," SpringerBriefs in Economics, Springer, number 978-3-319-75807-7, September.
    18. Easterlin, Richard A., 2006. "Life cycle happiness and its sources: Intersections of psychology, economics, and demography," Journal of Economic Psychology, Elsevier, vol. 27(4), pages 463-482, August.
    19. Becker, Gary S, 1981. "Altruism in the Family and Selfishness in the Market Place," Economica, London School of Economics and Political Science, vol. 48(189), pages 1-15, February.
    20. Tomas Frejka, 2008. "Overview Chapter 2: Parity distribution and completed family size in Europe," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 19(4), pages 47-72.
    21. Arnstein Aassve & Alice Goisis & Maria Sironi, 2012. "Happiness and Childbearing Across Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 108(1), pages 65-86, August.
    22. Tomas Kögel, 2004. "Did the association between fertility and female employment within OECD countries really change its sign?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(1), pages 45-65, February.
    23. Easterlin, Richard A., 1974. "Does Economic Growth Improve the Human Lot? Some Empirical Evidence," MPRA Paper 111773, University Library of Munich, Germany.
    24. Proto, Eugenio & Rustichini, Aldo, 2015. "Life satisfaction, income and personality," Journal of Economic Psychology, Elsevier, vol. 48(C), pages 17-32.
    25. Mikko Myrskyla & Hans-Peter Kohler & Francesco C. Billari, 2011. "High development and fertility: fertility at older reproductive ages and gender equality explain the positive link," Working Papers 049, "Carlo F. Dondena" Centre for Research on Social Dynamics (DONDENA), Università Commerciale Luigi Bocconi.
    26. Frances Goldscheider & Eva Bernhardt & Trude Lappegård, 2015. "The Gender Revolution: A Framework for Understanding Changing Family and Demographic Behavior," Population and Development Review, The Population Council, Inc., vol. 41(2), pages 207-239, June.
    27. Angela Luci & Olivier Thevenon, 2010. "Does economic development drive the fertility rebound in OECD countries?," Working Papers hal-00520948, HAL.
    28. Mikko Myrskylä & Hans-Peter Kohler & Francesco C. Billari, 2009. "Advances in development reverse fertility declines," Nature, Nature, vol. 460(7256), pages 741-743, August.
    29. Ada Ferrer-i-Carbonell & Paul Frijters, 2004. "How Important is Methodology for the estimates of the determinants of Happiness?," Economic Journal, Royal Economic Society, vol. 114(497), pages 641-659, July.
    30. van Praag, Bernard & Goedhart, Theo & Kapteyn, Arie, 1980. "The Poverty Line-A Pilot Survey in Europe," The Review of Economics and Statistics, MIT Press, vol. 62(3), pages 461-465, August.
    31. Easterlin, Richard A., 1995. "Will raising the incomes of all increase the happiness of all?," Journal of Economic Behavior & Organization, Elsevier, vol. 27(1), pages 35-47, June.
    32. Rachel Margolis & Mikko Myrskylä, 2011. "A Global Perspective on Happiness and Fertility," Population and Development Review, The Population Council, Inc., vol. 37(1), pages 29-56, March.
    33. Anna Matysiak & Letizia Mencarini & Daniele Vignoli, 2016. "Work–Family Conflict Moderates the Relationship Between Childbearing and Subjective Well-Being," European Journal of Population, Springer;European Association for Population Studies, vol. 32(3), pages 355-379, August.
    34. Gary S. Becker, 1960. "An Economic Analysis of Fertility," NBER Chapters, in: Demographic and Economic Change in Developed Countries, pages 209-240, National Bureau of Economic Research, Inc.
    35. Andres Vikat, 2004. "Women’s labor force attachment and childbearing in Finland," MPIDR Working Papers WP-2004-001, Max Planck Institute for Demographic Research, Rostock, Germany.
    36. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP) – Scope, Evolution and Enhancements," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(1), pages 139-169.
    37. Rannveig Hart, 2015. "Earnings and first birth probability among Norwegian men and women 1995-2010," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 33(38), pages 1067-1104.
    38. Andres Vikat, 2004. "Women’s Labor Force Attachment and Childbearing in Finland," Demographic Research Special Collections, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 3(8), pages 177-212.
    39. Anna Baranowska, 2010. "Family formation and subjective well-being.A literature overview," Working Papers 37, Institute of Statistics and Demography, Warsaw School of Economics.
    40. Mikko Myrskylä & Rachel Margolis, 2014. "Happiness - before and after the Kids," SOEPpapers on Multidisciplinary Panel Data Research 642, DIW Berlin, The German Socio-Economic Panel (SOEP).
    41. Le Moglie, Marco & Mencarini, Letizia & Rapallini, Chiara, 2015. "Is it just a matter of personality? On the role of subjective well-being in childbearing behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 117(C), pages 453-475.
    42. Cigno, Alessandro, 1986. "Fertility and the Tax-Benefit System: A Reconsideration of the Theory of Family Taxation," Economic Journal, Royal Economic Society, vol. 96(384), pages 1035-1051, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marco Le Moglie & Letizia Mencarini & Chiara Rapallini, 2019. "Does income moderate the satisfaction of becoming a parent? In Germany it does and depends on education," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(3), pages 915-952, July.
    2. Anna Matysiak & Letizia Mencarini & Daniele Vignoli, 2015. "Work-family Conflict Moderates the Impact of Childbearing on Subjective Well-Being," Carlo Alberto Notebooks 435, Collegio Carlo Alberto.
    3. Anna Matysiak & Letizia Mencarini & Daniele Vignoli, 2016. "Work–Family Conflict Moderates the Relationship Between Childbearing and Subjective Well-Being," European Journal of Population, Springer;European Association for Population Studies, vol. 32(3), pages 355-379, August.
    4. Antje Mertens & Miriam Beblo, 2016. "Self-Reported Satisfaction and the Economic Crisis of 2007–2010: Or How People in the UK and Germany Perceive a Severe Cyclical Downturn," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(2), pages 537-565, January.
    5. Arnstein Aassve & Francesca Luppi & Letizia Mencarini, 2018. "Unlocking the black box of life satisfaction surrounding childbearing," Working Papers 120, "Carlo F. Dondena" Centre for Research on Social Dynamics (DONDENA), Università Commerciale Luigi Bocconi.
    6. Stefano Bartolini & Ennio Bilancini & Francesco Sarracino, 2013. "Predicting the Trend of Well-Being in Germany: How Much Do Comparisons, Adaptation and Sociability Matter?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 114(2), pages 169-191, November.
    7. Montizaan, Raymond M. & Vendrik, Maarten C.M., 2014. "Misery Loves Company: Exogenous shocks in retirement expectations and social comparison effects on subjective well-being," Journal of Economic Behavior & Organization, Elsevier, vol. 97(C), pages 1-26.
    8. Popova, Olga, 2014. "Can religion insure against aggregate shocks to happiness? The case of transition countries," Journal of Comparative Economics, Elsevier, vol. 42(3), pages 804-818.
    9. Hans-Peter Kohler & Letizia Mencarini, 2016. "The Parenthood Happiness Puzzle: An Introduction to Special Issue," European Journal of Population, Springer;European Association for Population Studies, vol. 32(3), pages 327-338, August.
    10. Zeynep B. Ugur, 2020. "Does Having Children Bring Life Satisfaction in Europe?," Journal of Happiness Studies, Springer, vol. 21(4), pages 1385-1406, April.
    11. Arnstein Aassve & Francesca Luppi & Letizia Mencarini, 2021. "A first glance into the black box of life satisfaction surrounding childbearing," Journal of Population Research, Springer, vol. 38(3), pages 307-338, September.
    12. Francesca Luppi & Letizia Mencarini, 2018. "Parents’ subjective well-being after their first child and declining fertility expectations," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 39(9), pages 285-314.
    13. Hajdu, Tamás & Hajdu, Gábor, 2011. "A hasznosság és a relatív jövedelem kapcsolatának vizsgálata magyar adatok segítségével [Examining the relation of utility and relative income using Hungarian data]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 56-73.
    14. Andrew E. Clark & Conchita D’Ambrosio & Simone Ghislandi, 2016. "Adaptation to Poverty in Long-Run Panel Data," The Review of Economics and Statistics, MIT Press, vol. 98(3), pages 591-600, July.
    15. Doris Hanappi & Oliver Lipps, 2019. "Job insecurity and parental well-being: The role of parenthood and family factors," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 40(31), pages 897-932.
    16. Lucía Macchia & Anke C. Plagnol, 2019. "Life Satisfaction and Confidence in National Institutions: Evidence from South America," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 14(3), pages 721-736, July.
    17. Andrés Rodríguez-Pose & Viola Berlepsch, 2014. "Social Capital and Individual Happiness in Europe," Journal of Happiness Studies, Springer, vol. 15(2), pages 357-386, April.
    18. Jiayuan Li & John Raine, 2014. "The Time Trend of Life Satisfaction in China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 116(2), pages 409-427, April.
    19. Kaiser, Caspar, 2022. "Using memories to assess the intrapersonal comparability of wellbeing reports," Journal of Economic Behavior & Organization, Elsevier, vol. 193(C), pages 410-442.
    20. Roberta Distante, 2013. "Subjective Well-Being, Income and Relative Concerns in the UK," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 113(1), pages 81-105, August.

    More about this item

    Keywords

    First child; subjective well-being; individual income; Germany;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • D1 - Microeconomics - - Household Behavior
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:frz:wpaper:wp2017_08.rdf. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Giorgio Ricchiuti (email available below). General contact details of provider: https://edirc.repec.org/data/defirit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.