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Playing the Fertility Game at Work: An Equilibrium Model of Peer Effects

  • Ciliberto, Federico
  • Miller, Amalia
  • Skyt Nielsen, Helena
  • Simonsen, Marianne

We study workplace peer effects in fertility decisions using a game theory model of strategic interactions among coworkers that allows for multiple equilibria. Using register-based data on fertile-aged women working in medium sized establishments in Denmark, we uncover negative average peer effects. Allowing for heterogeneous effects by worker type, we find that positive effects dominate across worker types defined by age or education. Negative effects dominate within age groups and among low-education types. Policy simulations show that these estimated effects make the distribution of where women work an important consideration, beyond simply if they work, in predicting population fertility.

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File URL: http://mpra.ub.uni-muenchen.de/45914/1/MPRA_paper_45914.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 45914.

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Date of creation: 01 Mar 2013
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Handle: RePEc:pra:mprapa:45914
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  1. Ciliberto, Federico & Tamer, Elie, 2009. "Market structure and multiple equilibria in airline markets," MPRA Paper 38635, University Library of Munich, Germany.
  2. David E. Bloom & David Canning & Isabel Günther & Sebastian Linnemayr, 2008. "Social Interactions and Fertility in Developing Countries," PGDA Working Papers 3408, Program on the Global Demography of Aging.
  3. Dahl, Gordon B. & Løken, Katrine V. & Mogstad, Magne, 2012. "Peer Effects In Program Participation," Working Papers in Economics 12/12, University of Bergen, Department of Economics.
  4. Brian Krauth, 2004. "Simulation-based estimation of peer effects," Econometrics 0408002, EconWPA.
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  8. Andrew Cohen & Beth Freeborn & Brian McManus, 2013. "Competition And Crowding Out In The Market For Outpatient Substance Abuse Treatment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54(1), pages 159-184, 02.
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  10. Melissa Schettini Kearney, 2002. "Is There an Effect of Incremental Welfare Benefits on Fertility Behavior? A Look at the Family Cap," NBER Working Papers 9093, National Bureau of Economic Research, Inc.
  11. David Card & Laura Giuliano, 2013. "Peer Effects and Multiple Equilibria in the Risky Behavior of Friends," The Review of Economics and Statistics, MIT Press, vol. 95(4), pages 1130-1149, October.
  12. Esther Duflo & Emmanuel Saez, 2003. "The Role Of Information And Social Interactions In Retirement Plan Decisions: Evidence From A Randomized Experiment," The Quarterly Journal of Economics, MIT Press, vol. 118(3), pages 815-842, August.
  13. Graham, Bryan S. & Hahn, Jinyong, 2005. "Identification and estimation of the linear-in-means model of social interactions," Economics Letters, Elsevier, vol. 88(1), pages 1-6, July.
  14. Amalia Miller, 2011. "The effects of motherhood timing on career path," Journal of Population Economics, Springer, vol. 24(3), pages 1071-1100, July.
  15. Charles F. Manski & Joram Mayshar, 2003. "Private Incentives and Social Interactions: Fertility Puzzles in Israel," Journal of the European Economic Association, MIT Press, vol. 1(1), pages 181-211, 03.
  16. Helena Skyt Nielsen & Marianne Simonsen & Mette Verner, 2004. "Does the Gap in Family-friendly Policies Drive the Family Gap?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(4), pages 721-744, December.
  17. Bandiera, Oriana & Barankay, Iwan & Rasul, Imran, 2009. "Social Incentives in the Workplace," IZA Discussion Papers 4190, Institute for the Study of Labor (IZA).
  18. Kohler, Hans-Peter, 2001. "Fertility and Social Interaction: An Economic Perspective," OUP Catalogue, Oxford University Press, number 9780199244591, March.
  19. Kevin J. Mumford, 2007. "The Optimal Tax Treatment of Families with Children," Discussion Papers 06-020, Stanford Institute for Economic Policy Research.
  20. Willis, Robert J, 1973. "A New Approach to the Economic Theory of Fertility Behavior," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages S14-64, Part II, .
  21. Galor, Oded, 2004. "The Demographic Transition and the Emergence of Sustained Economic Growth," CEPR Discussion Papers 4714, C.E.P.R. Discussion Papers.
  22. Larry E. Jones & Alice Schoonbroodt & Michèle Tertilt, 2010. "Fertility Theories: Can They Explain the Negative Fertility-Income Relationship?," NBER Chapters, in: Demography and the Economy, pages 43-100 National Bureau of Economic Research, Inc.
  23. Antonio Rangel, 2003. "Forward and Backward Intergenerational Goods: Why Is Social Security Good for the Environment?," American Economic Review, American Economic Association, vol. 93(3), pages 813-834, June.
  24. Jacob Mincer, 1991. "Education and Unemployment of Women," NBER Working Papers 3837, National Bureau of Economic Research, Inc.
  25. Victor Chernozhukov & Han Hong & Elie Tamer, 2007. "Estimation and Confidence Regions for Parameter Sets in Econometric Models," Econometrica, Econometric Society, vol. 75(5), pages 1243-1284, 09.
  26. Manski, Charles F, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," Review of Economic Studies, Wiley Blackwell, vol. 60(3), pages 531-42, July.
  27. David Blake & Les Mayhew, 2006. "On The Sustainability of the UK State Pension System in the Light of Population Ageing and Declining Fertility," Economic Journal, Royal Economic Society, vol. 116(512), pages F286-F305, 06.
  28. Thomas Lindh & Bo Malmberg, 1999. "Age structure effects and growth in the OECD, 1950-1990," Journal of Population Economics, Springer, vol. 12(3), pages 431-449.
  29. Øystein Kravdal, 2002. "Education and fertility in sub-Saharan africa: Individual and community effects," Demography, Springer, vol. 39(2), pages 233-250, May.
  30. Emmanuel Saez & Esther Duflo, 2003. "The role of information and social interactions in retirement plan decisions: Evidence from a randomized experiment," Framed Field Experiments 00141, The Field Experiments Website.
  31. Murray, Charles, 1993. "Welfare and the Family: The U.S. Experience," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages S224-62, January.
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