AN ENDOGENOUS DUMMY VARIABLE ESTIMATOR OF WOMEN'S OPPORTUNITY COSTS OF CHILDREN IN ITALY

The aim of the 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.