Fertility, Relative Wages, and Labor Market Decisions: A Case of Female Teachers

Abstract

This paper examines the effects of fertility and relative wages on occupational choice (teaching versus non-teaching) and labor force participation decisions of female college graduates using selectivity-corrected panel estimations. We find that the presence of a new born baby is not particularly important to the choice of occupation, but significantly discourages female labor force participation, especially among teachers. Higher relative wages are found to effectively attract female college graduates into teaching. College major in education is one of the most relevant determinants for female college graduates to become teachers. Though investing educational expenditures on teachers' salary seems to be a valid policy, providing incentives for female college students to major in education will be an alterative way to secure teacher supply. (c) 2005 Elsevier Ltd. All rights reserved.