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 13.
CITATION STYLE
Angrist, J. D., & Evans, W. N. (1998). Children and Their Parents’ Labor Supply: Evidence from Exogenous Variation in Family Size. American Economic Review, 88(3), 450–477.
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