Fertility Effects on Female Labor Supply: IV Evidence from IVF Treatments

39 Pages Posted: 8 Nov 2014

See all articles by Petter Lundborg

Petter Lundborg

Lund University School of Economics and Management; Tinbergen Institute; IZA Institute of Labor Economics

Erik Plug

University of Amsterdam - Amsterdam School of Economics (ASE); Tinbergen Institute; IZA Institute of Labor Economics

Astrid Würtz Rasmussen

Aarhus University

Abstract

This paper introduces a new IV strategy based on IVF induced fertility variation in childless families to estimate the causal effect of having children on female labor supply using IVF treated women in Denmark. Because observed chances of IVF success do not depend on labor market histories, IVF treatment success provides a plausible instrument for childbearing. Our IV estimates indicate that fertility effects are: (a) negative, large and long lasting; (b) much stronger at the extensive margin than at the intensive margin; and (c) similar for mothers, not treated with IVF, which suggests that IVF findings have a wider generalizability.

Keywords: children, extensive and intensive fertility margins, female labor supply

JEL Classification: J13, J22

Suggested Citation

Lundborg, Petter and Plug, Erik and Rasmussen, Astrid Würtz, Fertility Effects on Female Labor Supply: IV Evidence from IVF Treatments. IZA Discussion Paper No. 8609. Available at SSRN: https://ssrn.com/abstract=2520784

Petter Lundborg (Contact Author)

Lund University School of Economics and Management ( email )

P.O Box 7080
Lund
Sweden

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Erik Plug

University of Amsterdam - Amsterdam School of Economics (ASE) ( email )

Roetersstraat 11
1018 WB Amsterdam
Netherlands
+31 20 5254311 (Phone)
+31 20 5254310 (Fax)

Tinbergen Institute

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Astrid Würtz Rasmussen

Aarhus University ( email )

Fuglesangs Alle 4
Aarhus V, 8210
Denmark

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