Scandinavian Working Papers in Economics

Discussion Paper Series in Economics,
Norwegian School of Economics, Department of Economics

No 11/2014: Are all of the good men fathers? The effect of having children on earnings.

Astrid Kunze ()
Additional contact information
Astrid Kunze: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH , Department of Economics, Helleveien 30, N-5045 Bergen, Norway

Abstract: This study reconsiders the empirical question of whether men’s earnings increase because of children. Large Norwegian register data are used for brother and twin pairs who are followed over their life cycle from their first entry into the labour market. The data permit family-fixed effects to be modeled in various ways, as well as observing earnings growth before and after having children. The simple conditional correlation between children and earnings is positive. When only variation from between-sibling differences is used, the earnings effect post entry into firstfatherhood declines. The effect becomes small and non-significant when we use twins.

Keywords: Children; marriage; earnings; men; selection; siblings; twins; panel data.

JEL-codes: J13; J16; J22; J24; J31

36 pages, April 10, 2014

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