Sons, daughters, wives, and the labour market outcomes of West German men

Abstract

We find a strong association between family status and labor market outcomes for recent cohorts of West German men in the German Socio-Economic Panel. Living with a partner and living with a child both have substantial positive effects on earnings and work hours. These effects persist in individual fixed effects models that control for correlation in time-invariant unobservables that affect both family and work outcomes, though the inclusion of length of marriage reduces the effects of children. Child gender also matters - a first son increases fathers' work hours by 100 hours per year more than a first daughter, and positive effects of sons on work hours and earnings are particularly strong for men with higher levels of education. There is evidence of son "preference" in the probability that a Gentian man is observed to be coresiding with a son - men are more likely to remain in the same household with a male child than a female child. (c) 2007 Elsevier B.V. All rights reserved.