Joint estimation of sequential labor force participation and fertility decisions using Markov chain Monte Carlo techniques

Kenneth R. Troske, Alexandru Voicu

Research output: Contribution to journalArticlepeer-review

8 Scopus citations

Abstract

We analyze the effect of children on the labor supply of married women in a framework that accounts for the endogeneity of labor market and fertility decisions, for the heterogeneity of the effects of children and their correlation with the fertility decisions, and for the correlation of sequential labor market decisions. Women with stronger propensity for market work have fewer children, work more before the first birth, and face larger negative effects of children. The total effect of a child remains considerable long after birth; prior birth-related reductions in labor supply account for a significant share of the total effect.

Original languageEnglish
Pages (from-to)150-169
Number of pages20
JournalLabour Economics
Volume17
Issue number1
DOIs
StatePublished - Jan 2010

Keywords

  • Endogenous fertility decisions
  • Female labor supply
  • Gibbs sampler
  • Heterogeneous children effects
  • Multinomial probit model

ASJC Scopus subject areas

  • Economics and Econometrics
  • Organizational Behavior and Human Resource Management

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