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Longitudinal Study: LSAC
Title: Early child development and parents' labor supply
Authors: Laffers, Lukas
Schmidpeter, Bernhard
Publication Date: Mar-2021
Pages: 190-208
Keywords: child development
maternal labor supply
sample selection
instrumental variables estimation
time use
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 nonrandom 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 h and weekly income by A$215. We provide evidence that mothers substitute working time with childcare to compensate for early disadvantages. We do not find any responses of fathers to early child development.
DOI: 10.1002/jae.2803
Research collection: Journal Articles
Appears in Collections:Journal Articles

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