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Can Women Have Children and a Career? IV Evidence from IVF Treatments

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This paper introduces a new IV strategy based on IVF (in vitro fertilization) induced fertility variation among childless women to estimate the causal effect of having children on their career. For this purpose, we use administrative data on IVF treated women in Denmark. Because observed chances of IVF success do not depend on labor market histories, IVF treatment success provides a plausible instrument for childbearing. Our IV estimates indicate that fertility effects on earnings are: (i) negative, large and long lasting; (ii) driven by fertility effects on hourly earnings and not so much on labor supply; and (iii) much stronger at the extensive margin than at the intensive margin.

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  • Lundborg, Petter & Plug, Erik & Würtz Rasmussen, Astrid, 2018. "Can Women Have Children and a Career? IV Evidence from IVF Treatments," Working Paper Series 2018:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  • Handle: RePEc:hhs:ifauwp:2018_002
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    Cited by:

    1. Tine L. Mundbjerg Eriksen & Amanda Gaulke & Niels Skipper & Jannet Svensson, 2020. "The Impact of Childhood Health Shocks on Parental Labor Supply," Economics Working Papers 2020-02, Department of Economics and Business Economics, Aarhus University.
    2. Simon Briole & Hélène Le Forner & Anthony Lepinteur, 2019. "Children's Socio-Emotional Skills: Is There a Quantity-Quality Trade-off?," Working Papers halshs-02331899, HAL.
    3. Dominique Meurs & Elena Vilar & Claudio Lucifora, 2019. "Having a child? Here is the bill - Parenthood, Earnings and Careers in an Internal Labor," EconomiX Working Papers 2019-13, University of Paris Nanterre, EconomiX.
    4. Ong, David & Yang, Yu & Zhang, Junsen, 2020. "Hard to get: The scarcity of women and the competition for high-income men in urban China," MPRA Paper 98166, University Library of Munich, Germany, revised 2020.
    5. Bütikofer, Aline & Jensen, Sissel & Salvanes, Kjell G., 2018. "The role of parenthood on the gender gap among top earners," European Economic Review, Elsevier, vol. 109(C), pages 103-123.
    6. Xinxin Ma & Jingwen Zhang, 2019. "Population Policy and its Influences on Female Labor Supply: Evidence from China," Asian Development Policy Review, Asian Economic and Social Society, vol. 7(4), pages 261-276, December.
    7. Welteke, Clara & Wrohlich, Katharina, 2019. "Peer effects in parental leave decisions," Labour Economics, Elsevier, vol. 57(C), pages 146-163.
    8. Bonev, Petyo, 2020. "Nonparametric identification in nonseparable duration models with unobserved heterogeneity," Economics Working Paper Series 2005, University of St. Gallen, School of Economics and Political Science.
    9. Biørn, Erik, 2017. "Identification, Instruments, Omitted Variables, and Rudimentary Models: Fallacies in the ‘Experimental Approach’ to Econometrics," Memorandum 13/2017, Oslo University, Department of Economics.
    10. Naomi Gershoni & Corinne Low, 2019. "Older Yet Fairer: How Extended Reproductive Time Horizons Reshaped Marriage Patterns In Israel," Working Papers 1913, Ben-Gurion University of the Negev, Department of Economics.
    11. Massimiliano Bratti & Simona Fiore & Mariapia Mendola, 2020. "The impact of family size and sibling structure on the great Mexico–USA migration," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(2), pages 483-529, April.
    12. Raiber, Eva, 2017. "Expected Fertility and Educational Investment: Evidence from the One-Child-Policy in China," TSE Working Papers 17-853, Toulouse School of Economics (TSE).
    13. Brenøe, Anne Ardila & Canaan, Serena & Harmon, Nikolaj & Royer, Heather, 2019. "Is Parental Leave Costly for Firms and Coworkers?," IZA Discussion Papers 12870, Institute of Labor Economics (IZA).
    14. Estelle, Sarah M. & Phillips, David C., 2018. "Smart sentencing guidelines: The effect of marginal policy changes on recidivism," Journal of Public Economics, Elsevier, vol. 164(C), pages 270-293.
    15. Kamhöfer, Daniel A. & Westphal, Matthias, 2019. "Fertility effects of college education: Evidence from the German educational expansion," DICE Discussion Papers 316, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    16. Inés Berniell & Lucila Berniell & Dolores de la Mata & María Edo & Mariana Marchionni, 2019. "Gender Gaps in Labor Informality: The Motherhood Effect," CEDLAS, Working Papers 0247, CEDLAS, Universidad Nacional de La Plata.
    17. Titus J. Galama & Adriana Lleras-Muney & Hans van Kippersluis, 2018. "The Effect of Education on Health and Mortality: A Review of Experimental and Quasi-Experimental Evidence," NBER Working Papers 24225, National Bureau of Economic Research, Inc.
    18. Danielle Sandler & Nichole Szembrot, 2019. "Maternal Labor Dynamics: Participation, Earnings, and Employer Changes," Working Papers 19-33, Center for Economic Studies, U.S. Census Bureau.
    19. Zimmert, Franziska & Zimmert, Michael, 2020. "Paid parental leave and maternal reemployment: Do part-time subsidies help or harm?," Economics Working Paper Series 2002, University of St. Gallen, School of Economics and Political Science.
    20. Chabé-Ferret, Bastien, 2019. "Adherence to cultural norms and economic incentives: Evidence from fertility timing decisions," Journal of Economic Behavior & Organization, Elsevier, vol. 162(C), pages 24-48.
    21. Landmann, Andreas & Seitz, Helke & Steiner, Susan, 2017. "Patrilocal Residence and Female Labour Supply," IZA Discussion Papers 10890, Institute of Labor Economics (IZA).
    22. Emily Nix & Martin Eckhoff Andresen, 2019. "What Causes the Child Penalty? Evidence from Same Sex Couples and Policy Reforms," Discussion Papers 902, Statistics Norway, Research Department.
    23. Bhalotra, Sonia & Venkataramani, Atheendar & Walther, Selma, 2018. "Fertility and labor market responses to reductions in mortality," ISER Working Paper Series 2018-15, Institute for Social and Economic Research.
    24. Ong, David & Yang, Yu (Alan) & Zhang, Junsen, 2020. "Hard to get: The scarcity of women and the competition for high-income men in urban China," Journal of Development Economics, Elsevier, vol. 144(C).
    25. Petrongolo, Barbara & Ronchi, Maddalena, 2020. "Gender Gaps and the Structure of Local Labor Markets," IZA Discussion Papers 13143, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Children; extensive and intensive fertility margins; female labor supply;

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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