Fertility and Parental Labor-Force Participation : New Evidence from a Developing Country in theBalkans

This paper examines the effect of fertility on parental labor force participation in a developing country in the Balkans, with particular attention to the intervening role of childcare provided by grandparents in extended families. To address the p...

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Main Author:	Trako, Iva
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2019
Subjects:	LABOR FORCE PARTICIPATION LABOR SUPPLY FERTILITY INSTRUMENTAL VARIABLES CHILDCARE EDUCATIONAL ATTAINMENT OFF-FARM EMPLOYMENT
Online Access:	http://documents.worldbank.org/curated/en/588911562005798338/Fertility-and-Parental-Labor-Force-Participation-New-Evidence-from-a-Developing-Country-in-theBalkans http://hdl.handle.net/10986/32031

id	okr-10986-32031
recordtype	oai_dc
spelling	okr-10986-320312022-09-19T12:17:01Z Fertility and Parental Labor-Force Participation : New Evidence from a Developing Country in theBalkans Trako, Iva LABOR FORCE PARTICIPATION LABOR SUPPLY FERTILITY INSTRUMENTAL VARIABLES CHILDCARE EDUCATIONAL ATTAINMENT OFF-FARM EMPLOYMENT This paper examines the effect of fertility on parental labor force participation in a developing country in the Balkans, with particular attention to the intervening role of childcare provided by grandparents in extended families. To address the potential endogeneity in the fertility decision, the analysis exploits the Albanian parental preference for having sons combined with the siblings' sex-composition instrument as an exogenous source of variation. Using a repeated cross-section of parents with at least two children, the analysis finds a positive and statistically significant effect of fertility on parental labor supply for parents who are more likely to be younger, less educated, or live in extended families. The IV estimates for mothers show that they increase labor supply, especially hours worked per week and the likelihood of working off-farm. Similarly, fathers' likelihood of working off-farm and having a second occupation increase as a consequence of further childbearing. The heterogeneity analysis suggests that this positive effect might be the result of two plausible mechanisms: childcare provided by non-parental adults in extended families and greater financial costs of maintaining more children. 2019-07-03T16:29:57Z 2019-07-03T16:29:57Z 2019-07 Working Paper http://documents.worldbank.org/curated/en/588911562005798338/Fertility-and-Parental-Labor-Force-Participation-New-Evidence-from-a-Developing-Country-in-theBalkans http://hdl.handle.net/10986/32031 English Policy Research Working Paper;No. 8931 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Europe and Central Asia Eastern Europe
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	LABOR FORCE PARTICIPATION LABOR SUPPLY FERTILITY INSTRUMENTAL VARIABLES CHILDCARE EDUCATIONAL ATTAINMENT OFF-FARM EMPLOYMENT
spellingShingle	LABOR FORCE PARTICIPATION LABOR SUPPLY FERTILITY INSTRUMENTAL VARIABLES CHILDCARE EDUCATIONAL ATTAINMENT OFF-FARM EMPLOYMENT Trako, Iva Fertility and Parental Labor-Force Participation : New Evidence from a Developing Country in theBalkans
geographic_facet	Europe and Central Asia Eastern Europe
relation	Policy Research Working Paper;No. 8931
description	This paper examines the effect of fertility on parental labor force participation in a developing country in the Balkans, with particular attention to the intervening role of childcare provided by grandparents in extended families. To address the potential endogeneity in the fertility decision, the analysis exploits the Albanian parental preference for having sons combined with the siblings' sex-composition instrument as an exogenous source of variation. Using a repeated cross-section of parents with at least two children, the analysis finds a positive and statistically significant effect of fertility on parental labor supply for parents who are more likely to be younger, less educated, or live in extended families. The IV estimates for mothers show that they increase labor supply, especially hours worked per week and the likelihood of working off-farm. Similarly, fathers' likelihood of working off-farm and having a second occupation increase as a consequence of further childbearing. The heterogeneity analysis suggests that this positive effect might be the result of two plausible mechanisms: childcare provided by non-parental adults in extended families and greater financial costs of maintaining more children.
format	Working Paper
author	Trako, Iva
author_facet	Trako, Iva
author_sort	Trako, Iva
title	Fertility and Parental Labor-Force Participation : New Evidence from a Developing Country in theBalkans
title_short	Fertility and Parental Labor-Force Participation : New Evidence from a Developing Country in theBalkans
title_full	Fertility and Parental Labor-Force Participation : New Evidence from a Developing Country in theBalkans
title_fullStr	Fertility and Parental Labor-Force Participation : New Evidence from a Developing Country in theBalkans
title_full_unstemmed	Fertility and Parental Labor-Force Participation : New Evidence from a Developing Country in theBalkans
title_sort	fertility and parental labor-force participation : new evidence from a developing country in thebalkans
publisher	World Bank, Washington, DC
publishDate	2019
url	http://documents.worldbank.org/curated/en/588911562005798338/Fertility-and-Parental-Labor-Force-Participation-New-Evidence-from-a-Developing-Country-in-theBalkans http://hdl.handle.net/10986/32031
_version_	1764475627421827072

Fertility and Parental Labor-Force Participation : New Evidence from a Developing Country in theBalkans

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