In this study I use UK data in order to analyse whether low-skilled
immigrants contribute to affect fertility decisions of native women by reducing
the costs of household services and particularly child-care. Using the LFS
I provide evidence that cross-regional variation in low-skilled immigrant
concentration increases substantially the size of the household service
sector, and reduces the wages of those employed in the latter. The
potential endogeneity of immigrants’ location is controlled for by
adopting an IV strategy which exploits the past regional distribution of
immigrants. I test whether immigrants affect child-care costs and
fertility decisions by merging LFS data with the BHPS. My empirical
findings suggest that additional immigrants reduce regional child-care
costs, although the effect is not always significant. Ultimately low skilled
immigrants have a substantial positive effect on the probability of having a
child for native women. All estimates turn out to be robust to different
definitions of immigrants according to the degree of homogeneity with
which non-native individuals are defined.
Presented by:
Agnes Romiti (Tor Vergata University, Rome)
Date & time:
September 29, 2010 12:00 pm - September 29, 2010 1:00 pm
Internal seminars home