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Child Effect on Female Employment: Evidence from Iran with a Structural Approach

Hasheminasab, Jalal | 2022

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  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 56214 (44)
  4. University: Sharif University of Technology
  5. Department: Management and Economics
  6. Advisor(s): Keshavarz Haddad, Gholamreza; Moeini, Safoura
  7. Abstract:
  8. This research answers two questions: First, what effect does the increase in the number of children have on women's employment? Second, what is the magnitude of the effect of increasing the number of children on the potential employment rate of Iranian women? To address the first question, we use Heckman's reduced form regression along with a structural model of female labor supply. We use the Simulated Method Moments (SMM) to estimate the structural equations. Our data for the empirical analysis are taken from the Iranian Households’ Income and Expenditures Surveys in urban areas over the years 1990 to 2020. We use the estimated model to measure the potential increase in female employment rates due to a change in their children's distribution. The benchmark is provided by the employment rates predicted by the estimated model for the group of mothers born between 1979 and 1983, (1981 cohort). The findings indicate that the number of children has an inverse relationship with female employment. The evidence from the counterfactual analysis shows that, if the distribution of children for the benchmark group was similar to the distribution of children for cohorts (1956 to 1976, the older cohorts), female employment would decrease enormously. So, if the distribution of children in the benchmark group is similar to the 1961 cohort, it is predicted that the percentage of employed female aged 33-35 in the reference group will decrease by 9.8% or 3.83 percentage points
  9. Keywords:
  10. Female Labor Supply ; Structural Estimation ; Moments Simulated ; Fertility ; Women Employment ; Labor Economics

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