Early Child Development and Parents' Labor Supply

Lukas Laffers and Bernhard Schmidpeter ()
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Bernhard Schmidpeter: Vienna University of Economics and Business

No 13531, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The impact of children's early development status on parental labor market outcomes is not well established in the empirical literature. We combine an instrumental variable approach to account for the endogeneity of the development status with a model of non- random labor force participation to identify its impact. A one unit increase in our poor child development index reduces long-term maternal weekly hours worked by 9 hours and weekly income by 215 Australian Dollars. We provide evidence that mothers substitute working time with childcare to compensate for early disadvantages. We do not find any responds of fathers to early child development.

Keywords: sample selection; maternal labor supply; child development; instrumental variables estimation; time use (search for similar items in EconPapers)
JEL-codes: C21 I23 J13 J31 J64 (search for similar items in EconPapers)
Pages: 59 pages
Date: 2020-07
New Economics Papers: this item is included in nep-lma
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Published - published in: Journal of Applied Econometrics, 2021, 36 (2), 190-208

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Journal Article: Early child development and parents' labor supply (2021)
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