The Behavioral and Experimental Economics group has an influential position in this field in the Netherlands and Europe. CREED, the Amsterdam-based group, focuses particularly on three main projects: economics of political decision making; bounded rationality and institutions and experimental economics. The research of the Rotterdam-based group focuses on two broad themes: decision under risk and uncertainty and intertemporal choice.
- Petter Lundborg, Erik Plug, Astrid Würtz Rasmussen
- The American Economic Review, volume 107, no. 6, June 2017, Pages 1611-37
This paper introduces a new IV strategy based on IVF (in vitro fertilization) induced fertility variation among childless women to estimate the causal effect of having children on their career. 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.
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