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Citation Information

Type Working Paper
Title Fertility and Parental Labor-Force Participation: New Evidence from a Developing Country in the Balkans
Publication (Day/Month/Year) 2015
URL https://www.researchgate.net/profile/Iva_Trako3/publication/282673469_Fertility_and_Parental_Labor-F​orce_Participation_New_Evidence_from_a_Developing_Country_in_the_Balkans/links/561850a908aea803671de​11b.pdf
This paper examines the e?ect of fertility on parental labor-force participation in a developing country. In order to address the potential endogeneity in the fertility decision, I exploit Albanian parental preference for having sons as an exogenous source of variation. Using a repeated cross-section, I ?nd that having an additional child has a positive and statistically signi?cant e?ect on parental labor-force participation. IV estimates for mothers show that they increase labor supply, especially in terms of hours worked per week and the likelihood of working o?-farm. Similarly, father’s likelihood of working o?-farm and having a second occupation increase as a consequence of further childbearing. The heterogeneity analysis suggests that this positive e?ect might be the result of two plausible mechanisms: childcare provided by non-parental adults in extended families and greater ?nancial costs of feeding more children.

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