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Children and Their Parents' Labor Supply: Evidence from Exogenous Variation in Family Size.

Resource type
Authors/contributors
Title
Children and Their Parents' Labor Supply: Evidence from Exogenous Variation in Family Size.
Abstract
Research on the labor-supply consequences of childbearing is complicated by the endogeneity of fertility. This study uses parental preferences for a mixed sibling-sex composition to construct instrumental variables (IV) estimates of the effect of childbearing on labor supply. IV estimates for women are significant but smaller than ordinary least-squares estimates. The IV are also smaller for more educated women and show no impact of family size on husbands' labor supply. A comparison of estimates using sibling-sex composition and twins instruments implies that the impact of a third child disappears when the child reaches age thirteen. Copyright 1998 by American Economic Association.
Publication
American Economic Review
Volume
88
Issue
3
Pages
450-77
Date
1998-06
Citation
Angrist, J. D., & Evans, W. N. (1998). Children and Their Parents’ Labor Supply: Evidence from Exogenous Variation in Family Size. American Economic Review, 88, 450–477.
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