Do children affect the labor supply of Swedish men? Time diary vs. survey data

Abstract We use a generalized Tobit technique, Cragg's double-hurdle model with dependence, to re-examine the effect of young children on the labor supply of Swedish males, under the assumption of exogeneity of children. When ordinary survey data on a sample of Swedish men in 1984 is used, we find, consistent with other studies in the U.S. and Sweden, that children have no statistically significant effect on male labor supply. Supplementary time diary data, for the same sample, which measure actual hours worked, reveal that young children significantly reduce actual male labor supply by 2.6 to 3.4 hours per week, depending on age.

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