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Fertility and Parental Labor-Force Participation: New Evidence from a Developing Country in the Balkans

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  • Iva Trako

    (PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

This paper examines the effect of fertility on parental labor-force participation in a developing country. In order to address the potential endogeneity in the fertility decision, I exploit Albanian parental preference for having sons as an exogenous source of variation. Using a repeated cross-section, I find that having an additional child has a positive and statistically significant effect on parental labor-force participation. IV estimates for mothers show that they increase labor supply, especially in terms of hours worked per week and the likelihood of working off-farm. Similarly, father's likelihood of working off-farm and having a second occupation increase as a consequence of further childbearing. The heterogeneity analysis suggests that this positive effect might be the result of two plausible mechanisms: childcare provided by non-parental adults in extended families and greater financial costs of feeding more children.

Suggested Citation

  • Iva Trako, 2016. "Fertility and Parental Labor-Force Participation: New Evidence from a Developing Country in the Balkans," PSE Working Papers halshs-01361443, HAL.
  • Handle: RePEc:hal:psewpa:halshs-01361443
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01361443
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    Cited by:

    1. Isha Gupta, 2020. "Fertility And Mothers’ Labour Force Participation In Rural India," "Marco Fanno" Working Papers 0267, Dipartimento di Scienze Economiche "Marco Fanno".

    More about this item

    Keywords

    instrumental variables; fertility; parental labor-force participation;
    All these keywords.

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