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The effects of unemployment on fertility

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  • Andersen, Signe Hald
  • Özcan, Berkay

Abstract

We analyse the effects of unemployment on the likelihood of having a first and second birth in Denmark. The existing studies on this topic have generated contradictory results, and have made a weak case for the exogeneity of unemployment to fertility. We suggest that firm closures constitute an exogenous source of unemployment, and adopt firm closures as an instrument for estimating individuals’ fertility responses. Using a life-course approach, we exploit unique administrative data from Denmark that include all Danish residents born in 1966 and followed between 1982 and 2006. The data contain monthly information about each individual’s employment status, type of employer, relationship status and partner’s characteristics; as well as very detailed fertility information, including on stillbirths and registered miscarriages. We find that unemployment has a positive effect on motherhood transitions and a negative effect on fatherhood transitions, although the latter is not robust to the inclusion of controls. We find no significant effect of unemployment on second births.

Suggested Citation

  • Andersen, Signe Hald & Özcan, Berkay, 2021. "The effects of unemployment on fertility," LSE Research Online Documents on Economics 109007, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:109007
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    File URL: http://eprints.lse.ac.uk/109007/
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    References listed on IDEAS

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    2. Benedict Ogbemudia Imhanrenialena & Wilson Ebhotemhen & Anthony Aziegbemin Ekeoba & Andrew Asan Ate, 2023. "Exploring how unemployment and grandparental support influence reproductive decisions in sub-Saharan African countries: Nigeria in focus," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-13, December.

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    More about this item

    Keywords

    unemployment; firm closures; first and second births; causality;
    All these keywords.

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • N0 - Economic History - - General

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