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The effect of fertility timing on labor market work duration

Author

Listed:
  • Angelov, Nikolay

    (UCLS – Uppsala Center for Labour Studies)

  • Johansson, Per

    (Uppsala universitet, IFAU, IZA)

  • Lee, Myoung-jae

    (Department of Economics, Korea University)

Abstract

We provide a framework for the estimation of the impact of fertility timing on female long-term labor supply, measured as labor market work duration. We show that the genuine treatment is waiting time to birth rather than birth per se. In the application we control for the joint decision of fertility and labor supply by using the ‘same-sex’ instrument in a control function setting. We find that having a third child will in general reduce the labor market work duration. The magnitude of the effect depends to a large extent on the mothers’ age at second birth but also on the waiting time to the third child and the education level.

Suggested Citation

  • Angelov, Nikolay & Johansson, Per & Lee, Myoung-jae, 2017. "The effect of fertility timing on labor market work duration," Working Paper Series 2017:13, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    • Handle: RePEc:hhs:ifauwp:2017_013
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    References listed on IDEAS

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    More about this item

    Keywords

    Labor supply; Parenthood; Retirement; Dynamic treatment assignment; Censored regression;
    All these keywords.

    JEL classification:

    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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