Essays in Labor Markets: Gender, Fertility and Education
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A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Rosenbaum, Philip Doctoral Thesis Essays in Labor Markets: Gender, Fertility and Education PhD Series, No. 9.2019 Provided in Cooperation with: Copenhagen Business School (CBS) Suggested Citation: Rosenbaum, Philip (2019) : Essays in Labor Markets: Gender, Fertility and Education, PhD Series, No. 9.2019, ISBN 9788793744615, Copenhagen Business School (CBS), Frederiksberg, http://hdl.handle.net/10398/9714 This Version is available at: http://hdl.handle.net/10419/209102 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. 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Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by-nc-nd/3.0/ www.econstor.eu COPENHAGEN BUSINESS SCHOOL IN LABOR MARKETS – GENDER, FERTILITY AND EDUCATION ESSAYS SOLBJERG PLADS 3 DK-2000 FREDERIKSBERG DANMARK WWW.CBS.DK ISSN 0906-6934 Print ISBN: 978-87-93744-60-8 Online ISBN: 978-87-93744-61-5 Philip Rosenbaum ESSAYS IN LABOR MARKETS GENDER, FERTILITY AND EDUCATION PhD School in Economics and Management PhD Series 9.2019 PhD Series 9-2019 Essays in Labor Markets Gender, Fertility and Education Philip Rosenbaum Supervisor: Birthe Larsen Ph.D. School in Economics and Management Copenhagen Business School Philip Rosenbaum Essays in Labor Markets – Gender, Fertility and Education 1st edition 2019 PhD Series 9.2019 © Philip Rosenbaum ISSN 0906-6934 Print ISBN: 978-87-93744-60-8 Online ISBN: 978-87-93744-61-5 The PhD School in Economics and Management is an active national and international research environment at CBS for research degree students who deal with economics and management at business, industry and country level in a theoretical and empirical manner. All rights reserved. No parts of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage or retrieval system, without permission in writing from the publisher. Foreword This thesis is the result of my doctoral studies as Ph.D. Fellow at the Department of Economics at Copenhagen Business School. I am very grateful for the financial support provided by the Copenhagen Business School (CBS) and the Independent Research Fund Denmark throughout my Ph.D. This dissertation would not be possible without the help of many individuals and I would like to spend a moment to acknowledge them personally. First and foremost, I wish to express my sincere gratitude to my two supervisors, Birthe Larsen (CBS) and Mario D. Amore (Bocconi), for their numerous comments and suggestions, for our co-authorship, and more generally for always being so supportive and always being available. I wish to thank Morten Bennedsen (University of Copenhagen and INSEAD) not only for our co-authorship but also for providing so much guidance and insight throughout our relationship and for sponsoring my research stay at INSEAD in 2015. During 2017, I was fortunate to visit Columbia University, I am grateful to Daniel Wolfenzon not only for the invitation, but also for all his support, and to everyone else who provided feedback and insight during my stay. During 2018, I was again fortunate to stay abroad. This time at Paris School of Economics and I am thankful to Elena Stancanelli for the invitation and for many fruitful discussions on the topic of Household Economics. I also wish to thank CBS and the board of directors who acknowledged my work by awarding me the CBS Centenary Ph.D.-award in 2017 given to the most talented Ph.D. with international research career prospects. With the prize followed an additional fully funded year of research. I also wish to acknowledge the financial support from Otto Mønsteds Fond, Augustinus Fonden, Oticon Fonden, Knud Højgaards Fond and Christian & Ottilia i Brorsons Rejselegat, who all supported my various research stays and conference travels. I also wish to thank all of those who have taught me throughout my academic career at various the academic societies in Denmark, Norway, France and USA. I wish to thank University of Copenhagen for providing me with office space and letting me use their facilities as if I was one of their own students. Specifically, I am grateful for the Center of Excellence headed by Morten Bennedsen for extraordinary academic inspiration and financial support. I wish to thank my Ph.D. colleagues from near and far, not only for inspiring ideas and discussions but also for support and good company during many difficult hours of coursework, researching and writing - your presence will be missed. A special thanks goes to my parents, who have supported me in so many ways. My mother has often been my first editor, reading every single word, and meticulously proofreading endless editions of my papers with nothing but a smile and encouraging comments in return. Our inspirational discussions on gender roles and what gender inequality encompasses in the modern society have also been central to my research. It is safe to say, that my Ph.D.-process would have been far less enjoyable without her support. To anyone who I mistakenly left out, please know I appreciate your efforts and please accept my sincere apologies for the omission. Philip Rosenbaum – Copenhagen, Denmark, 2019 ii Abstract This Ph.D. thesis, titled Essays in Labor Markets – Gender, Fertility and Education, analyzes different economic problems within the field of labor economics. It consists of three independent research papers that can be read separately. Although the topic in each chapter is different, they have common ground in the empirical methods applied. The first chapter of this thesis, Does Early Childbearing Matter? New Approach Using Danish Register Data, studies how women’s timing of fertility affects their long-term labor market outcomes. This paper is currently resubmitted to the academic journal Labour Economics. Work interruptions related to childbearing are expected to affect mothers’ wages directly through changes in the formation of human capital. This effect is proposed as being exceptionally strong for early childbearing women who are about to start their working careers. This study investigates whether the poor long-term labor market outcomes experienced by women who first gave birth before turning 25 reflect previously existing disadvantages or are a consequence of the timing of childbearing. The purpose is also to observe whether a new combination of the best identification practices of earlier studies serves as a better estimation method. This is done by applying a within-family estimator while treating miscarriages as an exogenous variation, thereby mitigating family and individual heterogeneity, which might have biased earlier results based on either of the two identification strategies alone. It is found that early childbearing has no long-term effects on women’s earnings. There is a significant yearly earnings gap in the early 20s, which disappears by the age of 28, after which the trajectories are symmetric for the early and non-early childbearing mothers. I argue that a combination of the within-family method and the use of miscarriages as an exogenous variation serves as a better method for estimating the causal effect of early childbearing on women’s earnings. iii In the second chapter of this thesis, The Family Earnings Gap Revisited: A Household or a Labor Market Problem?, I study the gender inequality in the child penalty in earnings. In this paper, I take on a new approach to analyze this puzzle. I exploit the intra household difference in gender composition between heterosexual and lesbian couples. There are multiple advantages in evaluating the child penalty in same-sex couples compared to heterosexual couples. First, the partners in same-sex relations will, by default, face the same kind of labor market treatment i.e., gender based advantages and disadvantages. Second, the comparative advantages and division of labor within the households are non-gender specific. First, I show that the child penalty on aggregate is lower in lesbian households relative to heterosexual households, even after controlling for education, timing of parenthood, and area of residence. Second, looking at the individual parents’ child penalty and comparing heterosexual women to the lesbian partner with less bargaining power shows that the child penalty is not due to intra household bargaining position. Lesbians with low bargaining power experience relatively low child penalty compared to the heterosexual mothers. The analysis also reveals