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Mothers’ Income Recovery after Childbearing

  • Angelov, Nikolay

    ()

    (Uppsala Center for Labor Studies)

  • Karimi, Arizo

    ()

    (Uppsala Center for Labor Studies)

This paper examines the time profile of the effect of fertility on female labour earnings with respect to time since birth. To address endogeneity of fertility to labour income, we use the same-sex instrument (Angrist and Evans, 1998) in a novel way on a panel data set to uncover the time profile of the fertility effect. Our OLS estimates suggest that the largest impact takes place during the child’s first years of life, and then gradually diminishes over the lifecycle, with full recovery of income 15 years after birth. Our IV estimates support this finding, but suggest a faster recovery of earnings, although the estimates are now less precise. We are also able to reproduce this finding with a one-period cross-section and disaggregating the sample by years since third birth to estimate the time profile.

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File URL: http://www.ucls.nek.uu.se/digitalAssets/138/138560_201219_final.pdf
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Paper provided by Uppsala University, Department of Economics in its series Working Paper Series, Center for Labor Studies with number 2012:19.

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Length: 34 pages
Date of creation: 20 Nov 2012
Date of revision:
Handle: RePEc:hhs:uulswp:2012_019
Contact details of provider: Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Web page: http://www.nek.uu.se/
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  1. Eric Maurin & Julie Moschion, 2006. "The social multiplier and labour market participation of mothers," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00117042, HAL.
  2. Jaisri Gangadharan & Joshua Rosenbloom & Joyce Jacobson & James Wishart Pearre III, 1996. "The Effects of Child-Bearing on Married Women's Labor Supply and Earnings: Using Twin Births as a Natural Experiment," NBER Working Papers 5647, National Bureau of Economic Research, Inc.
  3. Angrist, Joshua D & Evans, William N, 1998. "Children and Their Parents' Labor Supply: Evidence from Exogenous Variation in Family Size," American Economic Review, American Economic Association, vol. 88(3), pages 450-77, June.
  4. Bronars, Stephen G & Grogger, Jeff, 1994. "The Economic Consequences of Unwed Motherhood: Using Twin Births as a Natural Experiment," American Economic Review, American Economic Association, vol. 84(5), pages 1141-56, December.
  5. repec:ese:iserwp:2001-19 is not listed on IDEAS
  6. Fuchs, Victor R, 1989. "Women's Quest for Economic Equality," Journal of Economic Perspectives, American Economic Association, vol. 3(1), pages 25-41, Winter.
  7. Reuben Gronau, 1982. "Sex-Related Wage Differentials and Women's Interrupted Labor Careers--The Chicken or the Egg," NBER Working Papers 1002, National Bureau of Economic Research, Inc.
  8. Huber, Martin, 2012. "Statistical verification of a natural "natural experiment": Tests and sensitivity checks for the sibling sex ratio instrument," Economics Working Paper Series 1219, University of St. Gallen, School of Economics and Political Science.
  9. Kenneth I. Wolpin & Mark R. Rosenzweig, 2000. "Natural "Natural Experiments" in Economics," Journal of Economic Literature, American Economic Association, vol. 38(4), pages 827-874, December.
  10. Cruces, Guillermo & Galiani, Sebastian, 2007. "Fertility and female labor supply in Latin America: New causal evidence," Labour Economics, Elsevier, vol. 14(3), pages 565-573, June.
  11. Joshua D. Angrist & Guido W. Imbens, 1995. "Identification and Estimation of Local Average Treatment Effects," NBER Technical Working Papers 0118, National Bureau of Economic Research, Inc.
  12. repec:ese:iserwp:2011-04 is not listed on IDEAS
  13. Browning, Martin, 1992. "Children and Household Economic Behavior," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1434-75, September.
  14. Goldin, Claudia & Polachek, Solomon, 1987. "Residual Differences by Sex: Perspectives on the Gender Gap in Earnings," American Economic Review, American Economic Association, vol. 77(2), pages 143-51, May.
  15. James P. Vere, 2011. "Fertility and parents' labour supply: new evidence from US census data," Oxford Economic Papers, Oxford University Press, vol. 63(2), pages 211-231, April.
  16. Concetta Rondinelli & Roberta Zizza, 2010. "(Non)persistent effects of fertility on female labour supply," Temi di discussione (Economic working papers) 783, Bank of Italy, Economic Research and International Relations Area.
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