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

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  • José María Da Rocha
  • Luisa Fuster

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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Bibliographic 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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Cited by:
  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.
  2. Daniela Del Boca & Silvia Pasqua & Chiara Pronzato, 2008. "Motherhood and market work decisions in institutional context: A European perspective," Working Papers 011, "Carlo F. Dondena" Centre for Research on Social Dynamics (DONDENA), Università Commerciale Luigi Bocconi.
  3. Angela Luci & Olivier Thevenon, 2010. "Does economic development drive the fertility rebound in OECD countries?," Working Papers hal-00520948, HAL.
  4. Andres Erosa & Luisa Fuster & Diego Restuccia, 2005. "A quantitative theory of the gender gap in wages," Working Paper 05-09, Federal Reserve Bank of Richmond.
  5. Hans Fehr & Daniela Ujhelyiova, 2010. "Fertility, Female Labor Supply, and Family Policy," SOEPpapers on Multidisciplinary Panel Data Research 331, DIW Berlin, The German Socio-Economic Panel (SOEP).
  6. Aoki, Reiko, 2008. "On the Persistence of Low Birthrate in Japan," PIE/CIS Discussion Paper 347, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
  7. Pedro Gete and Paolo Porchia, 2011. "Fertility and Consumption when Having a Child is a Risky Investment," Working Papers gueconwpa~11-11-03, Georgetown University, Department of Economics.
  8. Bovenberg, A.L., 2007. "The life-course perspective and social policies : an issues note," Social Protection Discussion Papers 41759, The World Bank.
  9. Hans Fehr & Manuel Kallweit & Fabian Kindermann, 2009. "Marital Risk, Family Insurance, and Public Policy," SOEPpapers on Multidisciplinary Panel Data Research 226, DIW Berlin, The German Socio-Economic Panel (SOEP).
  10. repec:ese:iserwp:2006-23 is not listed on IDEAS
  11. Aoki, Reiko & Konishi, Yoko, 2009. "The Relationship between Consumption, Labor Supply and Fertility: Theory and Evidence from Japan," PIE/CIS Discussion Paper 420, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
  12. Almudena Sevilla-Sanz & Joost de Laat, 2007. "Working Women, Men`s Home Time and Lowest Low Fertility," Economics Series Working Papers 308, University of Oxford, Department of Economics.
  13. Massimiliano Bratti & Konstantinos Tatsiramos, 2011. "The effect of delaying motherhood on the second childbirth in Europe," Journal of Population Economics, Springer, vol. 25(1), pages 291-321, October.

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