IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp13531.html
   My bibliography  Save this paper

Early Child Development and Parents' Labor Supply

Author

Listed:
  • Lafférs, Lukáš

    (Matej Bel University)

  • Schmidpeter, Bernhard

    (University of Linz)

Abstract

The impact of children's early development status on parental labor market outcomes is not well established in the empirical literature. We combine an instrumental variable approach to account for the endogeneity of the development status with a model of non- random labor force participation to identify its impact. A one unit increase in our poor child development index reduces long-term maternal weekly hours worked by 9 hours and weekly income by 215 Australian Dollars. We provide evidence that mothers substitute working time with childcare to compensate for early disadvantages. We do not find any responds of fathers to early child development.

Suggested Citation

  • Lafférs, Lukáš & Schmidpeter, Bernhard, 2020. "Early Child Development and Parents' Labor Supply," IZA Discussion Papers 13531, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13531
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp13531.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Heather Royer, 2009. "Separated at Girth: US Twin Estimates of the Effects of Birth Weight," American Economic Journal: Applied Economics, American Economic Association, vol. 1(1), pages 49-85, January.
    2. Douglas Almond & Bhashkar Mazumder, 2013. "Fetal Origins and Parental Responses," Annual Review of Economics, Annual Reviews, vol. 5(1), pages 37-56, May.
    3. Marianne Bertrand & Jessica Pan, 2013. "The Trouble with Boys: Social Influences and the Gender Gap in Disruptive Behavior," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 32-64, January.
    4. Mario Fiorini & Michael P. Keane, 2014. "How the Allocation of Children's Time Affects Cognitive and Noncognitive Development," Journal of Labor Economics, University of Chicago Press, vol. 32(4), pages 787-836.
    5. repec:hal:spmain:info:hdl:2441/3t1fcs7p369jmaalnboqhpgknn is not listed on IDEAS
    6. repec:pri:cheawb:case_paxson_economic_status_paper is not listed on IDEAS
    7. Claudia Olivetti & Barbara Petrongolo, 2016. "The Evolution of Gender Gaps in Industrialized Countries," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 405-434, October.
    8. Christopher S. Ruebeck & Joseph E. Harrington, Jr & Robert Moffitt, 1997. "Handedness and Earnings," Economics Working Paper Archive 533, The Johns Hopkins University,Department of Economics, revised Jun 2004.
    9. Francine D. Blau & Lawrence M. Kahn, 2017. "The Gender Wage Gap: Extent, Trends, and Explanations," Journal of Economic Literature, American Economic Association, vol. 55(3), pages 789-865, September.
    10. Currie, Janet & Stabile, Mark, 2006. "Child mental health and human capital accumulation: The case of ADHD," Journal of Health Economics, Elsevier, vol. 25(6), pages 1094-1118, November.
    11. Marianne Bertrand & Emir Kamenica & Jessica Pan, 2015. "Gender Identity and Relative Income within Households," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(2), pages 571-614.
    12. Ghazala Azmat & Rosa Ferrer, 2017. "Gender Gaps in Performance: Evidence from Young Lawyers," Journal of Political Economy, University of Chicago Press, vol. 125(5), pages 1306-1355.
    13. Christopher J. Ruhm, 2004. "Parental Employment and Child Cognitive Development," Journal of Human Resources, University of Wisconsin Press, vol. 39(1).
    14. Janet Currie & Mark Stabile, 2009. "Appendix to "Mental Health in Childhood and Human Capital"," NBER Chapters, in: The Problems of Disadvantaged Youth: An Economic Perspective, National Bureau of Economic Research, Inc.
    15. Pedro Carneiro & Katrine V. Løken & Kjell G. Salvanes, 2015. "A Flying Start? Maternity Leave Benefits and Long-Run Outcomes of Children," Journal of Political Economy, University of Chicago Press, vol. 123(2), pages 365-412.
    16. Thomas S. Dee, 2007. "Teachers and the Gender Gaps in Student Achievement," Journal of Human Resources, University of Wisconsin Press, vol. 42(3).
    17. David S. Salkever, 1982. "Children's Health Problems and Maternal Work Status," Journal of Human Resources, University of Wisconsin Press, vol. 17(1), pages 94-109.
    18. Ghazala Azmat & Rosa Ferrer, 2017. "Gender Gaps in Performance: Evidence from Young Lawyers," Post-Print hal-03391951, HAL.
    19. Misty Heggeness & Marta Murray-Close, 2019. "Manning Up and Womaning Down: How Husbands and Wives Report Earnings When She Earns More," Opportunity and Inclusive Growth Institute Working Papers 28, Federal Reserve Bank of Minneapolis.
    20. Nicoletti, Cheti & Tonei, Valentina, 2020. "Do parental time investments react to changes in child’s skills and health?," European Economic Review, Elsevier, vol. 127(C).
    21. Paul Frijters & David Johnston & Manisha Shah & Michael Shields, 2013. "Intrahousehold Resource Allocation: Do Parents Reduce or Reinforce Child Ability Gaps?," Demography, Springer;Population Association of America (PAA), vol. 50(6), pages 2187-2208, December.
    22. Hans Fricke & Markus Frölich & Martin Huber & Michael Lechner, 2020. "Endogeneity and non‐response bias in treatment evaluation – nonparametric identification of causal effects by instruments," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 35(5), pages 481-504, August.
    23. Marianne Bertrand & Claudia Goldin & Lawrence F. Katz, 2010. "Dynamics of the Gender Gap for Young Professionals in the Financial and Corporate Sectors," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 228-255, July.
    24. Marianne Page & Jessamyn Schaller & David Simon, 2019. "The Effects of Aggregate and Gender-Specific Labor Demand Shocks on Child Health," Journal of Human Resources, University of Wisconsin Press, vol. 54(1), pages 37-78.
    25. Hope Corman & Kelly Noonan & Nancy E. Reichman, 2005. "Mother's Labor Supply in Fragile Families: The Role of Child Health," Eastern Economic Journal, Eastern Economic Association, vol. 31(4), pages 601-616, Fall.
    26. Chamberlain, Gary, 1986. "Asymptotic efficiency in semi-parametric models with censoring," Journal of Econometrics, Elsevier, vol. 32(2), pages 189-218, July.
    27. Kani Chen, 2001. "Parametric models for response‐biased sampling," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 63(4), pages 775-789.
    28. Breunig, Christoph & Mammen, Enno & Simoni, Anna, 2018. "Nonparametric estimation in case of endogenous selection," Journal of Econometrics, Elsevier, vol. 202(2), pages 268-285.
    29. Christoph Breunig & Michael Kummer & Joerg Ohnemus & Steffen Viete, 2020. "Information technology outsourcing and firm productivity: eliminating bias from selective missingness in the dependent variable [Firms’ use of outside contractors: Theory and evidence]," The Econometrics Journal, Royal Economic Society, vol. 23(1), pages 88-114.
    30. Esmeralda A. Ramalho & Richard J. Smith, 2013. "Discrete Choice Non-Response," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 80(1), pages 343-364.
    31. Elizabeth T. Powers, 2001. "New Estimates of the Impact of Child Disability on Maternal Employment," American Economic Review, American Economic Association, vol. 91(2), pages 135-139, May.
    32. Gong Tang, 2003. "Analysis of multivariate missing data with nonignorable nonresponse," Biometrika, Biometrika Trust, vol. 90(4), pages 747-764, December.
    33. Flabbi, Luca & Moro, Andrea, 2012. "The effect of job flexibility on female labor market outcomes: Estimates from a search and bargaining model," Journal of Econometrics, Elsevier, vol. 168(1), pages 81-95.
    34. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
    35. Wasi, Nada & den Berg, Bernard van & Buchmueller, Thomas C., 2012. "Heterogeneous effects of child disability on maternal labor supply: Evidence from the 2000 US Census," Labour Economics, Elsevier, vol. 19(1), pages 139-154.
    36. Amy Hsin & Christina Felfe, 2014. "When Does Time Matter? Maternal Employment, Children’s Time With Parents, and Child Development," Demography, Springer;Population Association of America (PAA), vol. 51(5), pages 1867-1894, October.
    37. Paul Frijters & David W. Johnston & Manisha Shah & Michael A. Shields, 2009. "To Work or Not to Work? Child Development and Maternal Labor Supply," American Economic Journal: Applied Economics, American Economic Association, vol. 1(3), pages 97-110, July.
    38. Barbara L. Wolfe & Steven C. Hill, 1995. "The Effect of Health on the Work Effort of Single Mothers," Journal of Human Resources, University of Wisconsin Press, vol. 30(1), pages 42-62.
    39. Almond, Douglas & Currie, Janet, 2011. "Human Capital Development before Age Five," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 15, pages 1315-1486, Elsevier.
    40. Joshua Goodman, 2014. "The Wages of Sinistrality: Handedness, Brain Structure, and Human Capital Accumulation," Journal of Economic Perspectives, American Economic Association, vol. 28(4), pages 193-212, Fall.
    41. Claudia Olivetti & Barbara Petrongolo, 2016. "The Evolution of Gender Gaps in Industrialized Countries," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 405-434, October.
    42. Nancy E. Reichman & Hope Corman & Kelly Noonan, 2003. "Effects of Child Health on Parents' Relationship Status," NBER Working Papers 9610, National Bureau of Economic Research, Inc.
    43. Charles L. Baum II, 2003. "Does Early Maternal Employment Harm Child Development? An Analysis of the Potential Benefits of Leave Taking," Journal of Labor Economics, University of Chicago Press, vol. 21(2), pages 381-408, April.
    44. Melissa S. Kearney & Phillip B. Levine, 2012. "Why Is the Teen Birth Rate in the United States So High and Why Does It Matter?," Journal of Economic Perspectives, American Economic Association, vol. 26(2), pages 141-163, Spring.
    45. repec:pri:cheawb:case_paxson_economic_status_paper.pdf is not listed on IDEAS
    46. Claudia Goldin, 2014. "A Grand Gender Convergence: Its Last Chapter," American Economic Review, American Economic Association, vol. 104(4), pages 1091-1119, April.
    47. Thomas S. Dee, 2005. "A Teacher Like Me: Does Race, Ethnicity, or Gender Matter?," American Economic Review, American Economic Association, vol. 95(2), pages 158-165, May.
    48. Junjian Yi & James J. Heckman & Junsen Zhang & Gabriella Conti, 2015. "Early Health Shocks, Intra†household Resource Allocation and Child Outcomes," Economic Journal, Royal Economic Society, vol. 125(588), pages 347-371, November.
    49. Raquel Bernal, 2008. "The Effect Of Maternal Employment And Child Care On Children'S Cognitive Development," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(4), pages 1173-1209, November.
    50. Margherita Fort & Andrea Ichino & Giulio Zanella, 2020. "Cognitive and Noncognitive Costs of Day Care at Age 0–2 for Children in Advantaged Families," Journal of Political Economy, University of Chicago Press, vol. 128(1), pages 158-205.
    51. Breunig, Christoph & Kummer, Michael & Ohnemus, Jörg & Viete, Steffen, 2016. "IT outsourcing and firm productivity: Eliminating bias from selective missingness in the dependent variable," ZEW Discussion Papers 16-092, ZEW - Leibniz Centre for European Economic Research.
    52. Anne Case & Darren Lubotsky & Christina Paxson, 2002. "Economic Status and Health in Childhood: The Origins of the Gradient," American Economic Review, American Economic Association, vol. 92(5), pages 1308-1334, December.
    53. Francesco Agostinelli & Giuseppe Sorrenti, 2018. "Money vs. Time: Family Income, Maternal Labor Supply, and Child Development," Working Papers 2018-017, Human Capital and Economic Opportunity Working Group.
    54. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, vol. 42(4), pages 679-694, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Voit, Falk A. C., 2023. "Adverse birth outcomes and parental labor market participation after birth," Hannover Economic Papers (HEP) dp-710, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    2. Arenas-Arroyo, Esther & Schmidpeter, Bernhard, 2022. "Spillover effects of immigration policies on children's human capital," Ruhr Economic Papers 974, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    3. Kouki, Amairisa, 2023. "Beyond the “Comforts” of work from home: Child health and the female wage penalty," European Economic Review, Elsevier, vol. 157(C).
    4. Cho, Seungyeon, 2021. "Is handedness exogenously determined? Counterevidence from South Korea," Economics & Human Biology, Elsevier, vol. 43(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Heyman, Fredrik & Norbäck, Pehr-Johan & Persson, Lars, 2017. "Talent, Career Choice and Competition: The Gender Wage Gap at the Top," Working Paper Series 1169, Research Institute of Industrial Economics, revised 06 Mar 2023.
    2. Ahammer, Alexander & Glogowsky, Ulrich & Halla, Martin & Hener, Timo, 2023. "The Parenthood Penalty in Mental Health: Evidence from Austria and Denmark," IZA Discussion Papers 16459, Institute of Labor Economics (IZA).
    3. Anthony B. Atkinson & Alessandra Casarico & Sarah Voitchovsky, 2018. "Top incomes and the gender divide," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 16(2), pages 225-256, June.
    4. Eriksen, Tine L. Mundbjerg & Gaulke, Amanda & Skipper, Niels & Svensson, Jannet, 2021. "The impact of childhood health shocks on parental labor supply," Journal of Health Economics, Elsevier, vol. 78(C).
    5. Petrongolo, Barbara & Ronchi, Maddalena, 2020. "Gender gaps and the structure of local labor markets," Labour Economics, Elsevier, vol. 64(C).
    6. Cheti Nicoletti & Valentina Tonei, 2017. "The response of parental time investments to the child’s skills and health," Discussion Papers 17/08, Department of Economics, University of York.
    7. Itzik Fadlon & Frederik Plesner Lyngse & Torben Heien Nielsen, 2022. "Early Career Setbacks and Women’s Career-Family Trade-Off," CEBI working paper series 22-06, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).
    8. Corekcioglu, Gozde & Francesconi, Marco & Kunze, Astrid, 2020. "Do Generous Parental Leave Policies Help Top Female Earners?," IZA Discussion Papers 13275, Institute of Labor Economics (IZA).
    9. Pierre-Jean Messe & Jeremy Tanguy, 2022. "Does gender equality bargaining reduce child penalty? Evidence from France," TEPP Working Paper 2022-19, TEPP.
    10. Julian Johnsen & Hyejin Ku & Kjell G. Salvanes, 2023. "Competition and Career Advancement," CESifo Working Paper Series 10577, CESifo.
    11. Kouki, Amairisa, 2023. "Beyond the “Comforts” of work from home: Child health and the female wage penalty," European Economic Review, Elsevier, vol. 157(C).
    12. 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.
    13. Warn N. Lekfuangfu & Grace Lordan, 2023. "Documenting occupational sorting by gender in the UK across three cohorts: does a grand convergence rely on societal movements?," Empirical Economics, Springer, vol. 64(5), pages 2215-2256, May.
    14. Paul Frijters & David W. Johnston & Manisha Shah & Michael A. Shields, 2008. "Early Child Development and Maternal Labor Force Participation: Using Handedness as an Instrument," NCER Working Paper Series 27, National Centre for Econometric Research.
    15. Nieto, Adrián, 2021. "Native-immigrant differences in the effect of children on the gender pay gap," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 654-680.
    16. Henrik Kleven & Camille Landais & Jakob Egholt Søgaard, 2019. "Children and Gender Inequality: Evidence from Denmark," American Economic Journal: Applied Economics, American Economic Association, vol. 11(4), pages 181-209, October.
    17. Isabelle Sin & Steven Stillman & Richard Fabling, 2017. "What drives the gender wage gap? Examining the roles of sorting, productivity differences, and discrimination," Working Papers 17_15, Motu Economic and Public Policy Research.
    18. Cemal Eren Arbatlı & Quamrul H. Ashraf & Oded Galor & Marc Klemp, 2020. "Diversity and Conflict," Econometrica, Econometric Society, vol. 88(2), pages 727-797, March.
    19. Elisabeth Grewenig & Philipp Lergetporer & Katharina Werner, 2020. "Gender Norms and Labor-Supply Expectations: Experimental Evidence from Adolescents," CESifo Working Paper Series 8611, CESifo.
    20. Zeng-Hua Lu & Alec Zuo, 2017. "Child disability, welfare payments, marital status and mothers’ labor supply: Evidence from Australia," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1339769-133, January.

    More about this item

    Keywords

    sample selection; maternal labor supply; child development; instrumental variables estimation; time use;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp13531. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.