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The Effect of Job Displacement on Couples? Fertility Decisions

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  • Kristiina Huttunen
  • Jenni Kellokumpu

Abstract

This paper analyzes the effects of job displacement on fertility using Finnish longitudinal employer-employee data (FLEED) matched to birth records. We distinguish between male and female job losses. We focus on couples where one spouse has lost his/her job due to a plant closure or mass layoff and follow them for several years both before and following the job loss. As a comparison group we use similar couples that were not affected by job displacement. In order to examine the possible channels through which job loss affects fertility we examine also the effect on earnings, employment and divorce. The results show that a woman?s own job loss decreases fertility mainly for highly educated women. For every 100 displaced females there are approximately 4 less children born. A man?s job loss has no significant impact on completed fertility.

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Bibliographic Info

Paper provided by Government Institute for Economic Research Finland (VATT) in its series Working Papers with number 29.

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Date of creation: 22 Mar 2012
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Handle: RePEc:fer:wpaper:29

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Keywords: Plant closure; employment; earnings; divorce; fertility;

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References

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Cited by:
  1. 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.
  2. Marcus Eliason, 2012. "Lost jobs, broken marriages," Journal of Population Economics, Springer, vol. 25(4), pages 1365-1397, October.
  3. Essi Eerola & Teemu Lyytikäinen, 2012. "On the role of public price information in housing markets," Working Papers 30, Government Institute for Economic Research Finland (VATT).
  4. Bergemann, Annette & Grönqvist, Erik & Gudbjörnsdottir, Soffia, 2011. "The effects of job displacement on the onset and progression of diabetes," Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis 48695, Verein für Socialpolitik / German Economic Association.

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