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Fertility Determinants and Economic Uncertainty:An Assessment Using European Panel Data

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  • George Hondroyiannis

    ()
    (Bank of greece and Harokopio University)

Abstract

This paper examines the determinants of fertility, using panel data for twenty-seven European countries. We employ panel co-integration to estimate fertility as function of demographic and economic variables. We show that low fertility in most industrialized countries in Europe is due to low infant mortality rates, high female employment, low nuptiality rate and high opportunity cost of having children. Using two measures of economic uncertainty, which are associated with labor market decisions - a production (an output) volatility measure and the unemployment rate - we examine to what extent economic insecurities affect fertility decisions. The empirical results show that both measures of economic uncertainty have a significant negative impact on fertility implying that labor market insecurities might be a significant factor affecting fertility decisions.

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Bibliographic Info

Paper provided by Bank of Greece in its series Working Papers with number 96.

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Length: 46 pages
Date of creation: Apr 2009
Date of revision:
Handle: RePEc:bog:wpaper:96

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Keywords: Fertility Choice; Panel Estimation;

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Cited by:
  1. Kuang-Ta Lo, 2012. "The Crowding-out Effect of Homeownership on Fertility," Journal of Family and Economic Issues, Springer, vol. 33(1), pages 108-117, March.
  2. Bastien CHABE-FERRET & Paolo MELINDI GHIDI, 2011. "Differences in Fertility Behavior and Uncertainty: An Economic Theory of the Minority Status Hypothesis," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2011005, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES), revised 12 Dec 2011.
  3. Justin Doran, 2012. "An analysis of the interdependence of demographic factors, labour effort and economic growth in Ireland," International Journal of Social Economics, Emerald Group Publishing, vol. 39(3), pages 221-237, March.
  4. Modena, Francesca & Rondinelli, Concetta & Sabatini, Fabio, 2012. "Economic insecurity and fertility intentions: the case of Italy," MPRA Paper 36353, University Library of Munich, Germany.
  5. Patti Fisher & Catherine Montalto, 2011. "Loss Aversion and Saving Behavior: Evidence from the 2007 U.S. Survey of Consumer Finances," Journal of Family and Economic Issues, Springer, vol. 32(1), pages 4-14, March.
  6. Alejandro Cid & Charles Stokes, 2013. "Family Structure and Children’s Education Outcome: Evidence from Uruguay," Journal of Family and Economic Issues, Springer, vol. 34(2), pages 185-199, June.
  7. Marcus Klemm, 2012. "Job Security and Fertility: Evidence from German Reunification," Ruhr Economic Papers 0379, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  8. Zulal Denaux & David Denaux & Yeliz Yalcin, 2011. "Factors Affecting Attendance of Major League Baseball: Revisited," Atlantic Economic Journal, International Atlantic Economic Society, vol. 39(2), pages 117-127, June.
  9. Alejandro Cid & Charles E. Stokes, 2011. "Family Structural Influences on Children’s Education Attainment:Evidence from Uruguay," Documentos de Trabajo/Working Papers 1103, Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo..
  10. Kurt A. Hafner & David Mayer-Foulkes, 2012. "Fertility, Human Development, and Economic Growth: Long- term Short-term Causal Links," DEGIT Conference Papers c017_024, DEGIT, Dynamics, Economic Growth, and International Trade.
  11. Andrea Menclova, 2013. "The Effects of Unemployment on Prenatal Care Use and Infant Health," Journal of Family and Economic Issues, Springer, vol. 34(4), pages 400-420, December.
  12. Kai-Wen Cheng, 2011. "The Effect of Contraceptive Knowledge on Fertility: The Roles of Mass Media and Social Networks," Journal of Family and Economic Issues, Springer, vol. 32(2), pages 257-267, June.
  13. Dimitrios Sideris, 2011. "Optimum currency areas, structural changes and the endogeneity of the OCA criteria: evidence from six new EU member states," Applied Financial Economics, Taylor & Francis Journals, vol. 21(4), pages 195-206.
  14. Bastien CHABE-FERRET, 2013. "The Importance of Fertility Norms: New Evidence from France," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2013012, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  15. Patti Fisher, 2013. "Is There Evidence of Loss Aversion in Saving Behaviors in Spain?," Journal of Family and Economic Issues, Springer, vol. 34(1), pages 41-51, March.
  16. Artjoms Ivlevs & Roswitha King, 2012. "Family Migration Capital and Migration Intentions," Journal of Family and Economic Issues, Springer, vol. 33(1), pages 118-129, March.
  17. Vasilis Droucopoulos & Panagiotis Chronis, 2010. "“Assessing market dominance”: a comment and an extension," Working Papers 109, Bank of Greece.
  18. Bastien CHABE-FERRET, 2013. "Socioeconomic Characteristics, Fertility Norms and the Black-White Fertility Gap in the US," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2013011, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).

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