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Relative Wage Changes and Fertility in the US

Relative Wage Changes and Fertility in the US During the last several decades, the US wage structure experienced substantial changes because of energy price shocks, increased international competition, and technological change. Katz and Murphy, among others, argued that these changes reflected a rise in demand for skilled workers and women. I use these types of relative wage changes to identify the effects of women's and men's earnings on fertility rates. Measurement error in grouped regressions is addressed by applying the Devereux unbiased-error-in-variables estimator. I find that higher earnings of men increase fertility among younger married women. Holding men's earnings constant, increased wages of married women reduce fertility among the younger women and increase it among the older women. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Eastern Economic Journal Springer Journals

Relative Wage Changes and Fertility in the US

Eastern Economic Journal , Volume 39 (2) – Mar 12, 2013

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References (84)

Publisher
Springer Journals
Copyright
Copyright © 2013 by Eastern Economic Association
Subject
Economics; Economics, general; Economic Theory/Quantitative Economics/Mathematical Methods
ISSN
0094-5056
eISSN
1939-4632
DOI
10.1057/eej.2013.2
Publisher site
See Article on Publisher Site

Abstract

During the last several decades, the US wage structure experienced substantial changes because of energy price shocks, increased international competition, and technological change. Katz and Murphy, among others, argued that these changes reflected a rise in demand for skilled workers and women. I use these types of relative wage changes to identify the effects of women's and men's earnings on fertility rates. Measurement error in grouped regressions is addressed by applying the Devereux unbiased-error-in-variables estimator. I find that higher earnings of men increase fertility among younger married women. Holding men's earnings constant, increased wages of married women reduce fertility among the younger women and increase it among the older women.

Journal

Eastern Economic JournalSpringer Journals

Published: Mar 12, 2013

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