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Why Are Fertility Rates And Female Employment Ratios Positively Correlated Across O.E.C.D. Countries?

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Author Info
José María Da Rocha
Luisa Fuster

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Abstract

We develop a quantitative theory of fertility and labor market participation decisions in order to investigate the role of labor market frictions in generating the observed positive association between fertility and employment among O.E.C.D. countries. We find that unemployment induces females to postpone and space births, which, in turn, reduces the total fertility rate. Moreover, differences in female labor outcomes across the United States and Spain can account for the low fertility rate in Spain relative to the United States. We also find that labor market frictions can generate a positive association between female employment ratios and fertility rates across economies. Copyright 2006 by the Economics Department Of The University Of Pennsylvania And Osaka University Institute Of Social And Economic Research Association.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-2354.2006.00410.x
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Publisher Info
Article provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.

Volume (Year): 47 (2006)
Issue (Month): 4 (November)
Pages: 1187-1222
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Handle: RePEc:ier:iecrev:v:47:y:2006:i:4:p:1187-1222

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  1. Andres Erosa & Luisa Fuster & Diego Restuccia, 2005. "A general equilibrium analysis of parental leave policies," Working Paper 05-08, Federal Reserve Bank of Richmond. [Downloadable!]
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  2. Joost de Laat & Aludena Sevilla Sanz, 2007. "Working Women, Men's Home Time and Lowest Low Fertility," Economics Series Working Papers 308, University of Oxford, Department of Economics. [Downloadable!]
  3. Andrés Erosa & Luisa Fuster & Diego Restuccia, 2005. "A Quantitative Theory of the Gender Gap in Wages," Working Papers tecipa-199, University of Toronto, Department of Economics. [Downloadable!]
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