An “Endogenous Dummy Variable” Estimator of Women’s Opportunity Costs of Children in Italy

  • Antonino Di Pino
  • Massimo Mucciardi
Conference paper
Part of the Contributions to Statistics book series (CONTRIB.STAT.)


The aim of this paper is to determine the opportunity cost of children for Italian women as the present value of the difference between theoretical and actual earnings, the former estimated as counterfactuals (what if the woman had had no children?). Using the Bank of Italy data set of Italian households, we estimate work earnings and the probability of labour force participation. Differential analysis carried out relating to various professional categories shows that the opportunity cost of children increases with the level of education and decreases with age and experience.


Child Care Opportunity Cost Labour Force Participation Hourly Wage Probit Regression 
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Copyright information

© Springer-Verlag Berlin Heidelberg 2004

Authors and Affiliations

  • Antonino Di Pino
    • 1
  • Massimo Mucciardi
    • 1
  1. 1.Dipartimento di EconomiaStatistica e Analisi Geopolitica del Territorio — Università di MessinaMessinaItaly

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