Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/76539
Authors: 
Broussard, Nzinga
Chami, Ralph
Hess, Gregory
Year of Publication: 
2003
Series/Report no.: 
CESifo Working Paper 1103
Abstract: 
We provide a theory whereby non-benevolent, self-employed households increase their expected family size to raise the likelihood that an inside family member will be a good match at running the business. Hence, having larger family sizes raises the self-employed household's expected return to their business. Using data from the General Social Survey, we find that respondents have approximately .2 to .4 more actual and expected number of children if they are self-employed as compared to if they are not self-employed. This empirical relationship is established across a broad array of sub-samples using a simple differences in means test. As well, the empirical relationship holds using a regression framework, including the use of instrumental variables estimation to allow for the possibility of endogeneity of the respondent's self-employment status and whether the respondent's spouse stays at home.
Subjects: 
self-employed
children
familiy business
matching
Document Type: 
Working Paper

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