cite: Shin2006 author: Shin, J., & Moon, S. year: 2006 title: "Fertility, relative wages, and labor market decisions: A case of female teachers" publisher: Economics of Education Review uri: https://doi.org/10.1016/j.econedurev.2005.06.004 pubtype: article discipline: economics country: United States period: 1968-1988 maxlength: targeting: implicit group: female teachers data: National Longitudinal Survey of the Young Women design: quasi-experimental method: fixed effects panel regressions; panel probit estimation sample: 2712 unit: individual representativeness: national causal: 0 # 0 correlation / 1 causal theory: limitations: looks at strictly female sample, can not account for changes relative to men observation: - intervention: education; regulation (relative wage-setting) institutional: 1 structural: 1 agency: 0 inequality: gender type: 1 # 0 vertical / 1 horizontal indicator: 1 # 0 absolute / 1 relative measures: employment (FLFP rate) findings: higher relative wages significantly increase FLFP for female teachers; presence of new-born baby significantly decreases FLFP, significantly more than non-teachers; does not have effect on teacher/non-teacher selection channels: most relevant determinant for FLFP as teacher is college major in education; education level significant determinant; higher baby-exit effect may be due to relatively temporary lower wage loss for teachers direction: 1 # -1 neg / 0 none / 1 pos significance: 2 # 0 nsg / 1 msg / 2 sg notes: annotation: | A study on the effects of providing relatively higher wages for teachers, as well as fertility differences, on labour market participation of young female teachers. It finds that providing relatively higher wages for teaching professions as compared to non-teaching professions significantly increases female labour force participation for teachers, though the strongest determinant for it is possessing a college major in education, with overall education level being another determinant. The study also looks at the effects of the presence of a new-born baby and finds that it significantly decreases female labour force participation and is almost twice as large for women in the teaching profession as compared to non-teaching jobs, though it does not have an effect on the choice of job between teaching or non-teaching. The authors suggest this relatively higher exit from the labour market for women with new-born babies in teaching professions may once again be due to low wages: teachers leaving the labour market experience relatively lower temporary wage losses than in other professions, decreasing the exit-cost. A limitation of the study is its restricted focus on strictly female underlying panel data which does not allow for comparisons between genders within or across professions.