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Petter Lundborg. Photo.

Petter Lundborg

Professor

Petter Lundborg. Photo.

Can Women Have Children and a Career: IV Evidence from IVF Treatments

Author

  • Petter Lundborg
  • Erik P Plug
  • Astrid Wurtz Rasmussen

Summary, in English

This paper introduces a new IV strategy based on IVF (in vitro fertilization) induced fertility variation among childless women to estimate the causal effect of having children on their career. For this purpose, we use administrative data on IVF treated women in Denmark. Because observed chances of IVF success do not depend on labor market histories, IVF treatment success provides a plausible instrument for childbearing. Our IV estimates indicate that fertility effects on earnings are: (i) negative, large, and long-lasting; (ii) driven by fertility effects on hourly earnings and not so much on labor supply; and (iii) much stronger at the extensive margin than at the intensive margin.

Department/s

  • Department of Economics

Publishing year

2017

Language

English

Pages

1611-1637

Publication/Series

American Economic Review

Volume

107

Issue

6

Document type

Journal article

Publisher

American Economic Association

Topic

  • Economics

Status

Published

ISBN/ISSN/Other

  • ISSN: 0002-8282