Working Paper: CEPR ID: DP4011
Authors: Arnstein Aassve; Simon Burgess; Matt Dickson; Carol Propper
Abstract: The Paper investigates the relationship of work and family life in Britain. Using hazard regression 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.
Keywords: fertility; labour supply; marriage
JEL Codes: J12; J13
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Female Employment (J21) | Fertility Events (J13) |
| Male Employment (J79) | Union Formation (J51) |
| Having Children (J13) | Union Dissolution (J50) |
| First Birth (J13) | Union Formation (J51) |
| Subsequent Births (J13) | Union Formation (J51) |
| Employment Transitions (Men) (J63) | Family Formation Transitions (J12) |
| Employment Transitions (Women) (J63) | Family Formation Transitions (J12) |