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Fertility and Family Labor Supply

Author

Listed:
  • Katrine M. Jakobsen

    (Department of Economics, University of Oxford)

  • Thomas H. J�rgensen

    (CEBI, Department of Economics, University of Copenhagen)

  • Hamish Low

    (Department of Economics, University of Oxford and IFS)

Abstract

We study how fertility decisions interact with labor supply and human capital accumulation of men and women. First, we use longitudinal Danish register data and tax reforms to show that increases in wages of women decrease fertility while increases in wages of men increase fertility. Second, we estimate a life-cycle model to quantify the importance of fertility adjustments for labor supply and long-run gender inequality. Wage elasticities of women are more than 10% lower if fertility cannot be adjusted. Finally, we show that the long-term consequences of human capital depreciation around childbirth in an important driver of the long-run gender wage gap in the model.

Suggested Citation

  • Katrine M. Jakobsen & Thomas H. J�rgensen & Hamish Low, 2022. "Fertility and Family Labor Supply," CEBI working paper series 22-04, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).
    • Handle: RePEc:kud:kucebi:2204
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    File URL: https://www.econ.ku.dk/cebi/publikationer/working-papers/CEBI_WP_04-22.Rev2.pdf
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    Cited by:

    1. Nakakuni, Kanato, 2024. "Macroeconomic analysis of the child benefit: Fertility, demographic structure, and welfare," Journal of the Japanese and International Economies, Elsevier, vol. 73(C).
    2. Helene Turon, 2022. "The Labour Supply of Mothers," Bristol Economics Discussion Papers 22/769, School of Economics, University of Bristol, UK.

    More about this item

    Keywords

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    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

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