Relative Wage Changes and Fertility in the US

Aliaksandr Amialchuk

Eastern Economic Journal, 2013, vol. 39, issue 2, 226 pages

Abstract: During the last several decades, the US wage structure experienced substantial changes because of energy price shocks, increased international competition, and technological change. Katz and Murphy, among others, argued that these changes reflected a rise in demand for skilled workers and women. I use these types of relative wage changes to identify the effects of women's and men's earnings on fertility rates. Measurement error in grouped regressions is addressed by applying the Devereux unbiased-error-in-variables estimator. I find that higher earnings of men increase fertility among younger married women. Holding men's earnings constant, increased wages of married women reduce fertility among the younger women and increase it among the older women.

Date: 2013
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