Using data from the U.S. Census, we find that married self-employed men have between 0.1 and 0.2 more children as compared to if they are not self-employed. This is consistent with the hypothesis that self-employed households have a preference for larger families to raise the likelihood that an inside family member will be a good match at running the business. This empirical relationship is established 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. Moreover, we find a slightly higher demand for sons among the self employed who are over 40 at the time of the 1990 U.S. Census: namely, given the exogenous variation in gender mix of prior children, self employed parents born prior to 1950 appear to have an increased demand for a third child if the first two children were not sons. This effect does disappear, however, for the later generation of respondents.
CITATION STYLE
Broussard, N. H., Chami, R., & Hess, G. D. (2015). (Why) Do self-employed parents have more children? Review of Economics of the Household, 13(2), 297–321. https://doi.org/10.1007/s11150-013-9190-0
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