Wage premium of fatherhood and labor supply in Japan

Shiho Yukawa

MPRA Paper from University Library of Munich, Germany

Abstract: Using data from the Japanese Panel Survey of Consumers (JPSC)1994-2006, we examine the effect of child birth on fathers’ wage rates and labor supply in Japan. We also compare effects of fatherhood among different cohorts by dividing the JPSC sample into two birth year cohorts (born in or before 1960 and born after 1960). We find that birth of child significantly increase hourly wage rates by 2.8 percents and annual work by 65 hours. Comparing with results in the U.S. (Lundberg and Rose 2002), the effect of child birth on labor supply is large but the effect on wage rates are relatively small in Japan. We also find that child birth have different impact on labor market outcome between the early and the later cohorts. In the early cohort, birth of child significantly increases wage rates but has no significant effect on labor supply. On the contrary, birth of child does not increases wage rates but significantly increases labor supply in the later cohort. Finally, we examine how gender difference of children matters. Although the impact of gender difference is not so large, the effect of birth of sons is larger than the effect of birth of daughters.

Keywords: child birth; labor supply; wage premium (search for similar items in EconPapers)
JEL-codes: C23 J13 J22 (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-dem, nep-lab and nep-lma
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:33049

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