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Entry into motherhood: The effect of wages

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  • Ariza, Alfredo
  • Ugidos Olazabal, Arantza

Abstract

Using the ECHP, we explored the determinants of having the first child in Spain. Our main goal was to study the relation between female wages and the decision to enter motherhood. Since the offered wage of non-working women is not observed, we estimate it and impute a potential wage to each woman (working and non-working). This potential wage enable us to investigate the effect of wages (the opportunity cost of time non-worked and dedicated to children) on the decision to have the first child, for both workers and non-workers. Contrary to previous results, we found that female wages are positively related to the likelihood of having the first child. This result suggests that the income effect overcomes the substitution effect when non-participants opportunity cost is also taken into account.

Suggested Citation

  • Ariza, Alfredo & Ugidos Olazabal, Arantza, 2007. "Entry into motherhood: The effect of wages," DFAEII Working Papers 1988-088X, University of the Basque Country - Department of Foundations of Economic Analysis II.
    • Handle: RePEc:ehu:dfaeii:6709
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    Cited by:

    1. Christina Boll & Malte Jahn & Andreas Lagemann, 2017. "The gender lifetime earnings gap—exploring gendered pay from the life course perspective," Journal of Income Distribution, Ad libros publications inc., vol. 25(1), pages 1-53, March.
    2. Christina Boll & Malte Jahn & Andreas Lagemann, 2018. "The gender lifetime earnings gap—exploring gendered pay from the life course perspective," Journal of Income Distribution, Ad libros publications inc., vol. 25(1), pages 1-53, March.

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