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Are all of the good men fathers? The effect of having children on earnings

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  • Kunze, Astrid

    (Dept. of Economics, Norwegian School of Economics and Business Administration)

Abstract

This study reconsiders the empirical question of whether men’s earnings increase because of children. Large Norwegian register data are used for brother and twin pairs who are followed over their life cycle from their first entry into the labour market. The data permit family-fixed effects to be modeled in various ways, as well as observing earnings growth before and after having children. The simple conditional correlation between children and earnings is positive. When only variation from between-sibling differences is used, the earnings effect post entry into firstfatherhood declines. The effect becomes small and non-significant when we use twins.

Suggested Citation

  • Kunze, Astrid, 2014. "Are all of the good men fathers? The effect of having children on earnings," Discussion Paper Series in Economics 11/2014, Norwegian School of Economics, Department of Economics.
    • Handle: RePEc:hhs:nhheco:2014_011
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    Cited by:

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    2. Fallesen, Peter, 2016. "Downward spiral: The impact of out-of-home placement on paternal welfare dependency," Children and Youth Services Review, Elsevier, vol. 66(C), pages 45-55.

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    More about this item

    Keywords

    Children; marriage; earnings; men; selection; siblings; twins; panel data.;
    All these keywords.

    JEL classification:

    • 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
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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