Conference Paper Monday Afternoon Seminar Series
Pre-Fatherhood, Fatherhood and Earnings: the perceived price of parenthood?
22 May 2006
In this paper, I investigate the effects of pre-fatherhood and fatherhood on labour market outcomes (wages and working hours) among cohabiting men in stable relationships. The analysis uses the European Community Household Panel Survey (ECHP) for France, West Germany and the UK, using panel data covering 1994 to 2001. I then allow for heterogeneity in responses to pre-parenthood and parenthood by distinguishing households in which the female partner participates continuously in the labour market from those in which she does not. I am investigating the wage effect of different household employment patterns. Whilst finding variation across the three countries, my estimates provide evidence for the existence of large selection effects into fatherhood, with higher wages for men who become fathers compared to men who do not become fathers. However, this effect is greatly reduced one year after the first birth. I also find evidence of intra-household reallocations of time and effort for cohabiting parents following the birth of the first child.