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Can Women Have Children and a Career: IV Evidence from IVF Treatments

Lundborg, Petter LU ; Plug, Erik P and Wurtz Rasmussen, Astrid (2017) In American Economic Review 107(6). p.1611-1637
Abstract
This paper introduces a new IV strategy based on IVF (in vitro fertilization) induced fertility variation among childless women to estimate the causal effect of having children on their career. For this purpose, we use administrative data on IVF treated women in Denmark. Because observed chances of IVF success do not depend on labor market histories, IVF treatment success provides a plausible instrument for childbearing. Our IV estimates indicate that fertility effects on earnings are: (i) negative, large, and long-lasting; (ii) driven by fertility effects on hourly earnings and not so much on labor supply; and (iii) much stronger at the extensive margin than at the intensive margin.
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
in
American Economic Review
volume
107
issue
6
pages
1611 - 1637
publisher
American Economic Association
external identifiers
  • scopus:85021049386
  • wos:000402552200009
ISSN
0002-8282
DOI
10.1257/aer.20141467
language
English
LU publication?
yes
id
1582005a-2caa-49f9-b2b8-7bc3f3a611e5
date added to LUP
2016-11-22 11:43:20
date last changed
2018-04-22 04:23:56
@article{1582005a-2caa-49f9-b2b8-7bc3f3a611e5,
  abstract     = {This paper introduces a new IV strategy based on IVF (in vitro fertilization) induced fertility variation among childless women to estimate the causal effect of having children on their career. For this purpose, we use administrative data on IVF treated women in Denmark. Because observed chances of IVF success do not depend on labor market histories, IVF treatment success provides a plausible instrument for childbearing. Our IV estimates indicate that fertility effects on earnings are: (i) negative, large, and long-lasting; (ii) driven by fertility effects on hourly earnings and not so much on labor supply; and (iii) much stronger at the extensive margin than at the intensive margin. },
  author       = {Lundborg, Petter and Plug, Erik P and Wurtz Rasmussen, Astrid},
  issn         = {0002-8282},
  language     = {eng},
  number       = {6},
  pages        = {1611--1637},
  publisher    = {American Economic Association},
  series       = {American Economic Review},
  title        = {Can Women Have Children and a Career: IV Evidence from IVF Treatments},
  url          = {http://dx.doi.org/10.1257/aer.20141467},
  volume       = {107},
  year         = {2017},
}