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The Impact of Children on Wages, Job Tenure, and the Division of Household Labour

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  • Millimet, Daniel L

Abstract

In the absence of typical exclusion restrictions, covariance restrictions are used to obtain estimates of the effects of children on household behaviour. Using data from the PSID on two age samples, children are found to have a significant impact on many household decisions. However, while in the young sample exogenous fertility cannot be rejected, in the older sample this is not the case. Finally, if the average household had one less child, the male-female wage differential would decrease by 9.5 %.

Suggested Citation

  • Millimet, Daniel L, 2000. "The Impact of Children on Wages, Job Tenure, and the Division of Household Labour," Economic Journal, Royal Economic Society, vol. 110(462), pages 139-157, March.
    • Handle: RePEc:ecj:econjl:v:110:y:2000:i:462:p:c139-57
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    Cited by:

    1. Lucifora, Claudio & Meurs, Dominique & Villar, Elena, 2021. "The “mommy track” in the workplace. Evidence from a large French firm," Labour Economics, Elsevier, vol. 72(C).
    2. Charles H. Mullin & Ping Wang, 2002. "The Timing of Childbearing among Heterogeneous Women in Dynamic General Equilibrium," NBER Working Papers 9231, National Bureau of Economic Research, Inc.
    3. Dominique Meurs & Elena Vilar & Claudio Lucifora, 2019. "Having a child? Here is the bill - Parenthood, Earnings and Careers in an Internal Labor," Working Papers hal-04141921, HAL.
    4. 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.
    5. Sara Cools & Marte Strøm, 2016. "Parenthood wage penalties in a double income society," Review of Economics of the Household, Springer, vol. 14(2), pages 391-416, June.
    6. Kim, Jungho & Aassve, Arnstein, 2006. "Fertility and its Consequence on Family Labour Supply," IZA Discussion Papers 2162, Institute of Labor Economics (IZA).
    7. Arnaud Dupuy & Daniel Fernandez-Kranz, 2011. "International differences in the family gap in pay: the role of labour market institutions," Applied Economics, Taylor & Francis Journals, vol. 43(4), pages 413-438.
    8. Iva Trako, 2016. "Fertility and Parental Labor-Force Participation: New Evidence from a Developing Country in the Balkans," Working Papers halshs-01361443, HAL.
    9. Daniel L. Millimet & Michael Nieswiadomy & Daniel Slottje, 2010. "Detailed Estimation Of Worklife Expectancy For The Measurement Of Human Capital: Accounting For Marriage And Children," Journal of Economic Surveys, Wiley Blackwell, vol. 24(2), pages 339-361, April.
    10. Nizalova, Olena Y. & Sliusarenko, Tamara & Shpak, Solomiya, 2016. "The motherhood wage penalty in times of transition," Journal of Comparative Economics, Elsevier, vol. 44(1), pages 56-75.
    11. Simonsen, Marianne & Skipper, Lars, 2012. "The family gap in wages: What wombmates reveal," Labour Economics, Elsevier, vol. 19(1), pages 102-112.
    12. Jessica Nisén & Maarten J. Bijlsma & Pekka Martikainen & Ben Wilson & Mikko Myrskylä, 2019. "The gendered impacts of delayed parenthood on educational and labor market outcomes: a dynamic analysis of population-level effects over young adulthood," MPIDR Working Papers WP-2019-017, Max Planck Institute for Demographic Research, Rostock, Germany.
    13. Erin Todd & Dennis Sullivan, 2001. "The Effects of Children on Household Income Packages: A Cross-National Analysis," LIS Working papers 257, LIS Cross-National Data Center in Luxembourg.
    14. Tobing, Elwin, 2011. "Taxation, human capital formation, and long-run growth with private investment in education," Journal of Asian Economics, Elsevier, vol. 22(1), pages 48-60, February.
    15. Rusty Tchernis, 2010. "Measuring Human Capital And Its Effects On Wage Growth," Journal of Economic Surveys, Wiley Blackwell, vol. 24(2), pages 362-387, April.
    16. Brooks, Chris & Fenton, Evelyn M. & Walker, James T., 2014. "Gender and the evaluation of research," Research Policy, Elsevier, vol. 43(6), pages 990-1001.

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