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Fertility and Economic Instability: The Role of Unemployment and Job Displacement

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Author Info

  • Emilia Del Bono
  • Andrea Weber
  • Rudolf Winter-Ebmer

Abstract

We study the effect of job displacement on fertility in a sample of white collar women in Austria. Using instrumental variables methods we show that unemploy- ment incidence as such has no negative effect on fertility decisions, but the very fact of being displaced from a career-oriented job has; fertility rates for women affected by a plant closure are signiffcantly below those of a control group, even after six years.

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File URL: http://www.econ.jku.at/papers/2011/wp1101.pdf
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Bibliographic Info

Paper provided by Department of Economics, Johannes Kepler University Linz, Austria in its series Economics working papers with number 2011-01.

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Length: 18 pages
Date of creation: Apr 2011
Date of revision:
Handle: RePEc:jku:econwp:2011_01

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

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References

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  1. Christian Dustmann & Costas Meghir, 1999. "Wages, experience and seniority," IFS Working Papers W99/01, Institute for Fiscal Studies.
  2. Tomáš Sobotka & Vegard Skirbekk & Dimiter Philipov, 2011. "Economic Recession and Fertility in the Developed World," Population and Development Review, The Population Council, Inc., vol. 37(2), pages 267-306, 06.
  3. Adsera, Alicia & Menendez, Alicia, 2009. "Fertility Changes in Latin America in the Context of Economic Uncertainty," IZA Discussion Papers 4019, Institute for the Study of Labor (IZA).
  4. Del Bono, Emilia & Weber, Andrea & Winter-Ebmer, Rudolf, 2008. "Clash of Career and Family. Fertility Decisions after Job Displacement," Economics Series 222, Institute for Advanced Studies.
  5. Butz, William P & Ward, Michael P, 1979. "The Emergence of Countercyclical U.S. Fertility," American Economic Review, American Economic Association, vol. 69(3), pages 318-28, June.
  6. Adsera, Alicia, 2005. "Where Are the Babies? Labor Market Conditions and Fertility in Europe," IZA Discussion Papers 1576, Institute for the Study of Labor (IZA).
  7. Rajeev Dehejia & Adriana LLeras Muney, 2004. "Booms, Busts, and Babies' Health," The Quarterly Journal of Economics, MIT Press, vol. 119(3), pages 1091-1130, August.
  8. Josef Zweimüller & Rudolf Winter-Ebmer & Rafael Lalive & Andreas Kuhn & Jean-Philippe Wuellrich & Oliver Ruf & Simon Büchi, 2009. "Austrian Social Security Database," NRN working papers 2009-03, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
    • Josef Zweimüller & Rudolf Winter-Ebmer & Rafael Lalive & Andreas Kuhn & Jean-Philippe Wuellrich & Oliver Ruf & Simon Büchi, 2009. "Austrian social security database," IEW - Working Papers 410, Institute for Empirical Research in Economics - University of Zurich.
  9. Namkee Ahn & Pedro Mira, . "A note on the changing relationship between fertility and female employment rates in developed countries," Working Papers 99-09, FEDEA.
  10. Monique Meron & Isabelle Widmer, 2002. "Unemployment Leads Women to Postpone the Birth of Their First Child," Population (english edition), Institut National d'Études Démographiques (INED), vol. 57(2), pages 301-330.
  11. Alicia Adsera, 2005. "Vanishing Children: From High Unemployment to Low Fertility in Developed Countries," American Economic Review, American Economic Association, vol. 95(2), pages 189-193, May.
  12. Chevalier, Arnaud & Harmon, Colm & O'Sullivan, Vincent & Walker, Ian, 2013. "The Impact of Parental Income and Education on the Schooling of Children," Papers WP468, Economic and Social Research Institute (ESRI).
  13. Bettio, Francesca & Villa, Paola, 1998. "A Mediterranean Perspective on the Breakdown of the Relationship between Participation and Fertility," Cambridge Journal of Economics, Oxford University Press, vol. 22(2), pages 137-71, March.
  14. Sara Rica & Amaia Iza, 2005. "Career Planning in Spain: Do Fixed-term Contracts Delay Marriage and Parenthood?," Review of Economics of the Household, Springer, vol. 3(1), pages 49-73, November.
  15. Øystein Kravdal, 2002. "The impact of individual and aggregate unemployment on fertility in Norway," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 6(10), pages 263-294, April.
  16. Marcus Eliason & Donald Storrie, 2006. "Lasting or Latent Scars? Swedish Evidence on the Long-Term Effects of Job Displacement," Journal of Labor Economics, University of Chicago Press, vol. 24(4), pages 831-856, October.
  17. Henriette Engelhardt & Alexia Prskawetz, 2002. "On the changing correlation between fertility and female employment over space and time," MPIDR Working Papers WP-2002-052, Max Planck Institute for Demographic Research, Rostock, Germany.
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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.

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