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

  • Angrist J
  • Evans W
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Research on the labor-supply consequences of childbearing is complicated by the endogeneity of fertility. This study uses parental preferences for a muxed sibling-sex composition to construct instrumental variables (IV) estimates of the effect of childbearing on labor supply. BV estimates for women are signiJicant but smaller than ordinary least-squares estimates, The PV are also smaller for more educated women and show no impact of family size on husbands9 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.

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  • Joshua D. Angrist

  • William N. Evans

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