Does the stork deliver happiness? Parenthood and life satisfaction

This paper examines the relationship between parenthood and life satisfaction using longitudinal data on women from the German Socio-Economic Panel. Previous studies have focused on satisfaction differences between parents and ex post similar childless adults or between pre- and post-birth years of mothers. Mostly small and often negative effects of parenthood are reported. Both comparisons are problematic if life satisfaction increases before giving birth; that is, if dynamic self-selection into parenthood exists. In this study we exploit the extended longitudinal dimension of the panel to track self-reported life satisfaction of women eventually to become mothers and of women eventually attaining a completed fertility of zero. In our estimations we employ matching and regression techniques which account for the selection into motherhood. We find motherhood to be associated with positive satisfaction gains occurring over several years.