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Clash of Career and Family: Fertility Decisions after Job Displacement

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Author Info

  • Del Bono, Emilia

    () (ISER, University of Essex)

  • Weber, Andrea

    () (University of Mannheim)

  • Winter-Ebmer, Rudolf

    () (University of Linz)

Abstract

In this paper we investigate how fertility decisions respond to unexpected career interruptions which occur as a consequence of job displacement. Using an event study approach we compare the birth rates of displaced women with those of women unaffected by job loss after establishing the pre-displacement comparability of these groups. Our results reveal that job displacement reduces average fertility by 5 to 10% in both the short and medium term (3 and 6 years) and that these effects are largely explained by the response of white collar women. Using an instrumental variable approach we provide evidence that the reduction in fertility is not due to the income loss generated by unemployment but arises because displaced workers undergo a career interruption. These results are interpreted in the light of a model in which the rate of human capital accumulation slows down after the birth of a child and all specific human capital is destroyed upon job loss.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3272.

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Length: 64 pages
Date of creation: Jan 2008
Date of revision:
Handle: RePEc:iza:izadps:dp3272

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Keywords: human capital; plant closings; unemployment; fertility;

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Citations

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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. Georg Wernhart & Rudolf Winter-Ebmer, 2008. "Do Austrian Men and Women Become more Equal? At Least in Terms of Labor Supply!," Economics working papers 2008-05, Department of Economics, Johannes Kepler University Linz, Austria.
  3. Kristiina Huttunen & Jenni Kellokumpu, 2012. "The Effect of Job Displacement on Couples? Fertility Decisions," Working Papers 29, Government Institute for Economic Research Finland (VATT).
  4. Francesca Modena & Fabio Sabatini, 2010. "I Would if I Could: Precarious Employment and Childbearing Intentions in Italy," Department of Economics Working Papers 1013, Department of Economics, University of Trento, Italia.
  5. Niedergesäss, Markus, 2013. "Employment, partnership and childbearing decisions of German women and men: A simultaneous hazards approach," University of Tuebingen Working Papers in Economics and Finance 51, University of Tuebingen, Faculty of Economics and Social Sciences.
  6. Francesca Modena & Concetta Rondinelli & Fabio Sabatini, 2012. "Economic insecurity and fertility intentions: the case of Italy," EERI Research Paper Series EERI_RP_2012_18, Economics and Econometrics Research Institute (EERI), Brussels.
  7. Jan Marcus, 2012. "Does Job Loss Make You Smoke and Gain Weight?," SOEPpapers on Multidisciplinary Panel Data Research 432, DIW Berlin, The German Socio-Economic Panel (SOEP).
  8. Peter Huber & Harald Oberhofer & Michael Pfaffermayr, 2011. "Job Creation and the Intra-distribution Dynamics of the Firm Size Distribution," WIFO Working Papers 395, WIFO.
  9. 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.
  10. Emilia Del Bono & Andrea Weber & Rudolf Winter-Ebmer, 2011. "Fertility and Economic Instability: The Role of Unemployment and Job Displacement," NRN working papers 2011-02, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
  11. Gregori Baetschmann & Kevin E. Staub & Raphael Studer, 2012. "Does the stork deliver happiness? Parenthood and life satisfaction," ECON - Working Papers 094, Department of Economics - University of Zurich.
  12. 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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