A note on the changing relationship between fertility and female employment rates in developed countries
AbstractIn this paper we look at a panel of OECD aggregate fertility and labor market data between 1970 and 1995 and we report some striking recent developments. Total Fertility Rates (TFR) were falling and Female Participation Rates were increasing, conforming to a well known long-run trend. Along the cross-sectional dimension, the correlation between TFR and FPR was negative and significant during the 1970's and up to the early 1980's. This seemed consistent with secular comovements. However, by the late 1980's the correlation had become positive and equally significant. We discuss our findings within the framework of standard neoclassical models of fertility and labor supply adapted to macro data, as in Butz and Ward (1979). In order to explain the reversal of the correlation between fertility and participation rates, we consider simple extensions of their framework. First, we discuss the possibility that income effects of female wage increases are important. Next, we turn to three other factors: inflexible working hours faced by individual workers, the possibility of purchasing child care, and unemployment.
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Bibliographic InfoPaper provided by FEDEA in its series Studies on the Spanish Economy with number 13.
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Other versions of this item:
- Pedro Mira & Namkee Ahn, 2002. "A note on the changing relationship between fertility and female employment rates in developed countries," Journal of Population Economics, Springer, vol. 15(4), pages 667-682.
- Ahn, N. & Mira, P., 1999. "A Note on the Changing Relationship Between Fertility and Female Employment Rates in Developed Countries," Papers, Centro de Estudios Monetarios Y Financieros- 9903, Centro de Estudios Monetarios Y Financieros-.
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
- J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
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