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Title: Intertemporal Substitution in Maternal Labor Supply: Evidence Using State School Entrance Age Laws
Resulting in 1 citation.
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Barua, Rashmi |
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Intertemporal Substitution in Maternal Labor Supply: Evidence Using State School Entrance Age Laws MPRA Paper No. 7923, Munich Personal RePEc Archive, 12 May 2008. Also: http://mpra.ub.uni-muenchen.de/7923/ Cohort(s): Children of the NLSY79, NLSY79 Publisher: Munich Personal RePEc Archive (MPRA) Keyword(s): Census of Population; Endogeneity; Geocoded Data; Human Capital; Labor Market Outcomes; Maternal Employment; School Entry/Readiness; State-Level Data/Policy; Time Use Permission to reprint the abstract has not been received from the publisher. [First posted 25 March 2008.] [Originally appeared as: Working Paper, Department of Economics, Boston University, November 2007]. In this paper, I propose a new framework to study the intertemporal labor supply hypothesis. I use an exogenous source of variation in maternal net earning opportunities, generated through school entrance age of children, to study intertemporal labor supply behavior. Employing data from the 1980 US Census and the NLSY, I estimate the effect of a one year delay in school attendance on long run maternal labor supply. To deal with the endogeneity of school attendance age, I exploit the variation in child month of birth and state kindergarten entrance age laws. IV estimates imply that having a 5 year old enrolled in school increases labor supply measures for married women, with no younger children, by between 7 to 34 percent. In contrast to the results for married mothers, I do not find any statistically significant effect on labor market outcomes for single mothers or mothers of 5 year olds with additional younger children. Further, using a sample of 7 to 10 year olds from the NLSY, I investigate persistence in employment outcomes for a married mother whose child delayed school entry. The estimates suggest that delayed school enrollment has long run implications for maternal labor supply. Results point towards significant intertemporal substitution in labor supply. Rough calculations yield an uncompensated wage elasticity of 0.76 and an intertemporal elasticity of substitution equal to 1.1. |
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Bibliography Citation
Barua, Rashmi. "Intertemporal Substitution in Maternal Labor Supply: Evidence Using State School Entrance Age Laws." MPRA Paper No. 7923, Munich Personal RePEc Archive, 12 May 2008. |