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Do Rich Parents Enjoy Children Less?

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  • 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
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    Keywords

    First child; subjective well-being; individual income; Germany;

    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

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