Employment, Family Union, and Childbearing Decisions in Great Britain
University of Essex - Institute for Social and Economic Research (ISER)
affiliation not provided to SSRN
University of Bristol - Leverhulme Centre for Market and Public Organisation (CMPO); University of Bristol - Department of Economics; Centre for Economic Policy Research (CEPR)
LSE STICERD Research Paper No. CASE084
The paper investigates the relationship between work and family life in Britain. Using appropriate statistical techniques we estimate a five-equation model, which includes birth events, union formation, union dissolution, employment and non-employment events. The model allows for unobserved heterogeneity that is correlated across all five equations. We use information from the British Household Panel Survey, including the retrospective histories concerning work, union, and child bearing, to estimate this model. We obtain well-defined parameter estimates, including significant and correlated unobserved heterogeneity. We find that transitions in and out of employment for men are relatively independent of other transitions. In contrast, there are strong links between female employment, having children and union formation. By undertaking a detailed micro simulations analysis, we show that different levels of female labour force participation do not necessarily lead to large changes in fertility levels. Changes in union formation and fertility levels, on the other hand, do have a significant impact on employment rates.
Number of Pages in PDF File: 45
JEL Classification: J12, J13, J22
Date posted: July 14, 2008
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