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Department of Economics

Research seminar med Erik Plug (Amsterdam School of Economics)

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Welcome to our research seminar with Professor Erik Plug from Amsterdam School of Economics.

The title of the presentation: "Fertility, labor supply and earnings: IV evidence from IVF treatments"

Abstract: This paper introduces a new IV strategy based on IVF (in vitro fertilization) induced fertility variation in childless families to estimate the causal effect of having children on female labor earnings. For this purpose, we use administrative data on IVF treated women in Denmark. Because observed chances of IVF success do not depend on labor market histories, IVF treatment success provides a plausible instrument for childbearing. Our IV estimates indicate that fertility effects on earnings are: (a) negative, large and long lasting; (b) driven by fertility effects on hourly earnings and not so much on labor supply; and (c) much stronger at the extensive margin than at the intensive margin.