The Econometrics of Female Labor Supply and Children
Econometric Reviews Volume 11, Issue 1, 1992
Posted: 5 Jun 2013
Date Written: August 10, 1991
This is a survey of applied econometric research on the effects of children on female labor supply. Reasons for interest in the topic, and a basic model and terminology, are reviewed. Concerns are raised about the possible endogeneity of child status variables, and about the instrumental variables approach for dealing with this problem. Alternative ways of conceptualizing and estimating child status effects are considered, together with selected empirical evidence. Relevant developments from the household demand literature are summarized. Basic issues of model choice are also discussed.
Keywords: Female Labor Supply, Fertility, Life Cycle Models, Household Decision Models, Demand Analysis, Endogeneity, Instrumental Variables
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