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(Why) Do Self-Employed Parents Have More Children?

Author

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  • Nzinga Broussard
  • Ralph Chami
  • Gregory Hess

Abstract

We provide a theory whereby non-benevolent, self-employed households increase their expected family size to raise the likelihood that an inside family member will be a good match at running the business. Hence, having larger family sizes raises the self-employed household’s expected return to their business. Using data from the General Social Survey, we find that respondents have approximately .2 to .4 more actual and expected number of children if they are self-employed as compared to if they are not self-employed. This empirical relationship is established across a broad array of sub-samples using a simple differences in means test. As well, the empirical relationship holds using a regression framework, including the use of instrumental variables estimation to allow for the possibility of endogeneity of the respondent’s self-employment status and whether the respondent’s spouse stays at home.

Suggested Citation

  • Nzinga Broussard & Ralph Chami & Gregory Hess, 2003. "(Why) Do Self-Employed Parents Have More Children?," CESifo Working Paper Series 1103, CESifo.
    • Handle: RePEc:ces:ceswps:_1103
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    Cited by:

    1. Pernilla Andersson Joona, 2018. "How does motherhood affect self-employment performance?," Small Business Economics, Springer, vol. 50(1), pages 29-54, January.
    2. Rosa Aisa & Joaquín Andaluz & Gemma Larramona, 2017. "Fertility patterns in the Roma population of Spain," Review of Economics of the Household, Springer, vol. 15(1), pages 115-133, March.
    3. Pernilla Andersson Joona, 2017. "Are mothers of young children more likely to be self-employed? The case of Sweden," Review of Economics of the Household, Springer, vol. 15(1), pages 307-333, March.
    4. Gustavo A. Caballero, 2017. "Responsibility or autonomy: children and the probability of self-employment in the USA," Small Business Economics, Springer, vol. 49(2), pages 493-512, August.
    5. Christopher Jepsen & Lisa K. Jepsen, 2017. "Self-employment, earnings, and sexual orientation," Review of Economics of the Household, Springer, vol. 15(1), pages 287-305, March.
    6. Blanchflower, David G., 2007. "Entrepreneurship in the United States," IZA Discussion Papers 3130, Institute of Labor Economics (IZA).
    7. Blanchflower, D. & Oswald, A., 1990. "What Makes A Young Entrepreneur?," Papers 373, London School of Economics - Centre for Labour Economics.
    8. Berkay Özcan, 2011. "Only the lonely? The influence of the spouse on the transition to self-employment," Small Business Economics, Springer, vol. 37(4), pages 465-492, November.
    9. Florian Noseleit, 2014. "Female self-employment and children," Small Business Economics, Springer, vol. 43(3), pages 549-569, October.
    10. Assmann, Daisy & Ehrl, Philipp, 2021. "Individualistic culture and entrepreneurial opportunities," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 1248-1268.
    11. Dongxu Wu & Zhongmin Wu, 2015. "Intergenerational links, gender differences, and determinants of self-employment," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 42(3), pages 400-414, August.
    12. Katherine Lim, 2019. "Do American mothers use self-employment as a flexible work alternative?," Review of Economics of the Household, Springer, vol. 17(3), pages 805-842, September.
    13. Tang, Junhua & Osmer, Eric & Zheng, Yao, 2022. "Do married couples make better family firm leaders: Evidence from China," Journal of Economics and Business, Elsevier, vol. 118(C).
    14. José Alberto Molina, 2020. "Family and Entrepreneurship: New Empirical and Theoretical Results," Journal of Family and Economic Issues, Springer, vol. 41(1), pages 1-3, March.
    15. LaLumia, Sara, 2009. "The Earned Income Tax Credit and Reported Self-Employment Income," National Tax Journal, National Tax Association;National Tax Journal, vol. 62(2), pages 191-217, June.
    16. Andersson Joona, Pernilla, 2014. "Female Self-Employment and Children: The Case of Sweden," IZA Discussion Papers 8486, Institute of Labor Economics (IZA).
    17. Hessels, Jolanda & Rietveld, Cornelius A. & van der Zwan, Peter, 2017. "Self-employment and work-related stress: The mediating role of job control and job demand," Journal of Business Venturing, Elsevier, vol. 32(2), pages 178-196.
    18. Blanco, Laura Cristina, 2019. "Inertial reproduction: is the two-child psychology the rule in Costa Rica?," Revista de Ciencias Económicas, Instituto de Investigaciones en Ciencias Económicas, Universidad de Costa Rica, vol. 37(1), December.
    19. David Blanchflower, 2009. "Minority self-employment in the United States and the impact of affirmative action programs," Annals of Finance, Springer, vol. 5(3), pages 361-396, June.
    20. Zheng Shen & Derek S. Brown & Xiaodong Zheng & Hualei Yang, 2022. "Women’s Off-Farm Work Participation and Son Preference in Rural China," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 41(3), pages 899-928, June.
    21. Blanchflower, David G. & Shadforth, Chris, 2007. "Entrepreneurship in the UK," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 3(4), pages 257-364, July.
    22. Nzinga Broussard & Ralph Chami & Gregory Hess, 2015. "(Why) Do self-employed parents have more children?," Review of Economics of the Household, Springer, vol. 13(2), pages 297-321, June.
    23. Amore, Mario Daniele & Miller, Danny & Le Breton-Miller, Isabelle & Corbetta, Guido, 2017. "For love and money: Marital leadership in family firms," Journal of Corporate Finance, Elsevier, vol. 46(C), pages 461-476.
    24. Gonçalves, Judite & Martins, Pedro S., 2019. "Is the future of work childless? Self-employment and fertility," GLO Discussion Paper Series 401, Global Labor Organization (GLO).

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    More about this item

    Keywords

    self-employed; children; familiy business; matching;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

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