THE IMPACT OF CHILDREN ON THE LABOR SUPPLY OF MARRIED-WOMEN - COMPARATIVE ESTIMATES FROM EUROPEAN AND UNITED-STATES DATA

This paper presents estimates of the impact of the age pattern and level of fertility on the probability of labour force participation by married and cohabiting women in twelve Eastern and Western European countries and the United States. Logit models for labour force participation probabilities are estimated conditional on age, age at marriage or union, educational attainment, current parity, and number of years in parity, using data on married and cohabiting women from the United Nations Economic Commission for Europe (UNECE) Comparative Study of World Fertility Surveys. The estimated models are used to simulate the age profiles of labour force participation conditional on the level and timing of fertility. The simulation results are presented in a series of charts grouped according to similarities in the effects of fertility on the age profiles of labour force participation. Four distinct patterns are identified that depend on the empirical significance of distinct number-of-children and age-of-youngest-child effects. The role of family policies and the extent to which the labour supply reductions associated with childbearing can be interpreted as opportunity costs are considered.