IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp4074.html
   My bibliography  Save this paper

The Effect of Children on the Level of Labor Market Involvement of Married Women: What is the Role of Education?

Author

Listed:
  • Troske, Kenneth

    () (University of Kentucky)

  • Voicu, Alexandru

    () (CUNY - College of Staten Island)

Abstract

We analyze the way women's education influences the effect of children on their level of labor market involvement. We propose an econometric model that accounts for the endogeneity of labor market and fertility decisions, for the heterogeneity of the effects of children and their correlation with the fertility decisions, and for the correlation of sequential labor market decisions. We estimate the model using panel data from NLSY79. Our results show that women with higher education work more before the birth of the first child, but children have larger negative effects on their level of labor market involvement. Differences across education levels are more pronounced with respect to full time employment than with respect to participation. Other things equal, higher wages reduce the effect of children on labor supply. Controlling for wages, women with higher education face larger negative effects of children on labor supply, which suggest they are characterized by a combination of higher marginal product of time spent in the production of child quality and higher marginal product of time relative to the marginal product of other inputs into the production of child quality.

Suggested Citation

  • Troske, Kenneth & Voicu, Alexandru, 2009. "The Effect of Children on the Level of Labor Market Involvement of Married Women: What is the Role of Education?," IZA Discussion Papers 4074, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp4074
    as

    Download full text from publisher

    File URL: http://ftp.iza.org/dp4074.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Rosenzweig, Mark R & Wolpin, Kenneth I, 1980. "Life-Cycle Labor Supply and Fertility: Causal Inferences from Household Models," Journal of Political Economy, University of Chicago Press, vol. 88(2), pages 328-348, April.
    2. Geweke, John, 1989. "Bayesian Inference in Econometric Models Using Monte Carlo Integration," Econometrica, Econometric Society, vol. 57(6), pages 1317-1339, November.
    3. Keane, Michael P, 1994. "A Computationally Practical Simulation Estimator for Panel Data," Econometrica, Econometric Society, vol. 62(1), pages 95-116, January.
    4. 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 450-477, June.
    5. Gianna Claudia Giannelli, 1996. "Women`s transitions in the labour market: A competing risks analysis on German panel data," Journal of Population Economics, Springer;European Society for Population Economics, vol. 9(3), pages 287-300.
    6. Heckman, James J & Willis, Robert J, 1977. "A Beta-logistic Model for the Analysis of Sequential Labor Force Participation by Married Women," Journal of Political Economy, University of Chicago Press, vol. 85(1), pages 27-58, February.
    7. Geweke, John & Keane, Michael, 2001. "Computationally intensive methods for integration in econometrics," Handbook of Econometrics,in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 56, pages 3463-3568 Elsevier.
    8. Gronau, Reuben, 1977. "Leisure, Home Production, and Work-The Theory of the Allocation of Time Revisited," Journal of Political Economy, University of Chicago Press, vol. 85(6), pages 1099-1123, December.
    9. Jacob Mincer & Solomon Polachek, 1974. "Family Investments in Human Capital: Earnings of Women," NBER Chapters,in: Marriage, Family, Human Capital, and Fertility, pages 76-110 National Bureau of Economic Research, Inc.
    10. Arleen Leibowitz & Jacob Alex Klerman & Linda J. Waite, 1992. "Employment of New Mothers and Child Care Choice: Differences by Children's Age," Journal of Human Resources, University of Wisconsin Press, vol. 27(1), pages 112-133.
    11. Reuben Gronau, 1974. "The Effect of Children on the Housewife's Value of Time," NBER Chapters,in: Economics of the Family: Marriage, Children, and Human Capital, pages 457-490 National Bureau of Economic Research, Inc.
    12. Marit RÃnsen & Marianne SundstrÃm, 1996. "Maternal employment in Scandinavia: A comparison of the after-birth employment activity of Norwegian and Swedish women," Journal of Population Economics, Springer;European Society for Population Economics, vol. 9(3), pages 267-285.
    13. Chib, Siddhartha & Greenberg, Edward, 1995. "Hierarchical analysis of SUR models with extensions to correlated serial errors and time-varying parameter models," Journal of Econometrics, Elsevier, vol. 68(2), pages 339-360, August.
    14. Geweke, John F. & Keane, Michael P. & Runkle, David E., 1997. "Statistical inference in the multinomial multiperiod probit model," Journal of Econometrics, Elsevier, vol. 80(1), pages 125-165, September.
    15. Blank, Rebecca M, 1989. "The Role of Part-Time Work in Women's Labor Market Choices over Time," American Economic Review, American Economic Association, vol. 79(2), pages 295-299, May.
    16. McCulloch, Robert & Rossi, Peter E., 1994. "An exact likelihood analysis of the multinomial probit model," Journal of Econometrics, Elsevier, vol. 64(1-2), pages 207-240.
    17. Michael, Robert T, 1973. "Education and the Derived Demand for Children," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages 128-164, Part II, .
    18. Dean R. Hyslop, 1999. "State Dependence, Serial Correlation and Heterogeneity in Intertemporal Labor Force Participation of Married Women," Econometrica, Econometric Society, vol. 67(6), pages 1255-1294, November.
    19. John F. Geweke & Michael P. Keane, 1996. "Bayesian inference for dynamic choice models without the need for dynamic programming," Working Papers 564, Federal Reserve Bank of Minneapolis.
    20. Christopher J. Ruhm, 2004. "Parental Employment and Child Cognitive Development," Journal of Human Resources, University of Wisconsin Press, vol. 39(1).
    21. Jane Waldfogel & Wen-Jui Han & Jeanne Brooks-Gunn, 2002. "The effects of early maternal employment on child cognitive development," Demography, Springer;Population Association of America (PAA), vol. 39(2), pages 369-392, May.
    22. Carrasco, Raquel, 2001. "Binary Choice with Binary Endogenous Regressors in Panel Data: Estimating the Effect of Fertility on Female Labor Participation," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(4), pages 385-394, October.
    23. Folbre, Nancy, 1994. "Children as Public Goods," American Economic Review, American Economic Association, vol. 84(2), pages 86-90, May.
    24. Browning, Martin, 1992. "Children and Household Economic Behavior," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1434-1475, September.
    25. William Axinn & Marin Clarkberg & Arland Thornton, 1994. "Family influences on family size preferences," Demography, Springer;Population Association of America (PAA), vol. 31(1), pages 65-79, February.
    26. Francine D. Blau, 1998. "Trends in the Well-Being of American Women, 1970-1995," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 112-165, March.
    27. C. Russell Hill & Frank P. Stafford, 1980. "Parental Care of Children: Time Diary Estimates of Quantity, Predictability, and Variety," Journal of Human Resources, University of Wisconsin Press, vol. 15(2), pages 219-239.
    28. R. Haurin & Frank Mott, 1990. "Adolescent sexual activity in the family context: The impact of older siblings," Demography, Springer;Population Association of America (PAA), vol. 27(4), pages 537-557, November.
    29. Daniel Powers & James Cherng-Tay Hsueh, 1997. "Sibling models of socioeconomic effects on the timing of first premarital birth," Demography, Springer;Population Association of America (PAA), vol. 34(4), pages 493-511, November.
    30. Alice Nakamura & Masao Nakamura, 1994. "Predicting Female Labor Supply: Effects of Children and Recent Work Experience," Journal of Human Resources, University of Wisconsin Press, vol. 29(2), pages 304-327.
    31. Ronsen, Marit & Sundstrom, Marianne, 1996. "Maternal Employment in Scandinavia: A Comparison of the After-Birth Employment Activity of Norwegian and Swedish Women," Journal of Population Economics, Springer;European Society for Population Economics, vol. 9(3), pages 267-285, August.
    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. Kenneth Troske & Alexandru Voicu, 2013. "The effect of the timing and spacing of births on the level of labor market involvement of married women," Empirical Economics, Springer, vol. 45(1), pages 483-521, August.
    2. Fitzenberger, Bernd & Sommerfeld, Katrin & Steffes, Susanne, 2013. "Causal effects on employment after first birth — A dynamic treatment approach," Labour Economics, Elsevier, vol. 25(C), pages 49-62.
    3. Miguel Jaramillo-Baanante, 2017. "Fertility and women’s work in a demographic transition: evidence from Peru," Working Papers 2017-90, Peruvian Economic Association.
    4. Julio Cáceres-Delpiano, 2012. "Can We Still Learn Something From the Relationship Between Fertility and Mother’s Employment? Evidence From Developing Countries," Demography, Springer;Population Association of America (PAA), vol. 49(1), pages 151-174, February.

    More about this item

    Keywords

    female labor supply; education; endogenous fertility decisions; heterogeneous children effects; multinomial probit model; Gibbs sampler;

    JEL classification:

    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

    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:dp4074. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak). General contact details of provider: http://www.iza.org .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.