Do union formation and childbearing improve subjective well-being? An application of propensity score matching to a Bulgarian panel

Abstract

The link between childbearing, union formation and subjective well-being is still under-investigated. A key problem is disentangling causal effects, a challenge when the interplay between life course pathways and states of mind is investigated. Here we use propensity score matching estimates applied to panel data to demonstrate how the birth of a first child or entry into union increase individuals’ psychological well-being and reduce disorientation in Bulgaria, a transition country with lowest-low fertility and postponement of union formation. Sensitivity analyses confirm the robustness of our findings to heterogeneous levels of hidden bias.