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Fertility and Parental Labor-Force Participation: New Evidence from a Developing Country in the Balkans

Abstract : This paper examines the effect of fertility on parental labor-force participation in a developing country. In order to address the potential endogeneity in the fertility decision, I exploit Albanian parental preference for having sons as an exogenous source of variation. Using a repeated cross-section, I find that having an additional child has a positive and statistically significant effect on parental labor-force participation. IV estimates for mothers show that they increase labor supply, especially in terms of hours worked per week and the likelihood of working off-farm. Similarly, father's likelihood of working off-farm and having a second occupation increase as a consequence of further childbearing. The heterogeneity analysis suggests that this positive effect might be the result of two plausible mechanisms: childcare provided by non-parental adults in extended families and greater financial costs of feeding more children.
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https://halshs.archives-ouvertes.fr/halshs-01361443
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Submitted on : Wednesday, September 7, 2016 - 12:05:59 PM
Last modification on : Tuesday, July 21, 2020 - 3:32:02 AM
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  • HAL Id : halshs-01361443, version 1

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Iva Trako. Fertility and Parental Labor-Force Participation: New Evidence from a Developing Country in the Balkans. 2016. ⟨halshs-01361443⟩

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