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Fertility and Female Employment Dynamics in Europe: The Effect of Using Alternative Econometric Modeling Assumptions

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  • Pierre-Carl Michaud

    ()

  • Konstantinos Tatsiramos

Abstract

The authors investigate the direct and long-run effects of fertility on employment in Europe estimating dynamic models of labor supply under different assumptions regarding the exogeneity of fertility and modeling assumptions related to initial conditions, unobserved heterogeneity and serial correlation in the error terms. They find overall large direct and long-run effects of giving birth on employment probabilities, and these effects differ considerably across countries. They find that within countries the results are sensitive to the statistical assumption made on initial conditions, the inclusion of serial correlation and the assumption of strict exogeneity of children. However, the pattern across countries is robust to these assumptions. They show that such patterns are largely consistent with prevailing institutional differences related to the flexibility of the labor markets and family policies.

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Paper provided by RAND Corporation Publications Department in its series Working Papers with number 643.

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Length: 37 pages
Date of creation: Nov 2008
Date of revision:
Handle: RePEc:ran:wpaper:643

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  1. Garibaldi, Pietro & Wasmer, Etienne, 2003. "Raising Female Employment: Reflexions and Policy Tools," IZA Discussion Papers 951, Institute for the Study of Labor (IZA).
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  4. Bratti, Massimiliano & Tatsiramos, Konstantinos, 2008. "Explaining How Delayed Motherhood Affects Fertility Dynamics in Europe," IZA Discussion Papers 3907, Institute for the Study of Labor (IZA).
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  9. Alessie, R.J.M. & Hochgürtel, S. & Soest, A.H.O. van, 2004. "Ownership of stocks and mutual funds: A panel data analysis," Open Access publications from Tilburg University urn:nbn:nl:ui:12-140722, Tilburg University.
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  14. Del Boca, Daniela & Sauer, Robert M., 2009. "Life cycle employment and fertility across institutional environments," European Economic Review, Elsevier, vol. 53(3), pages 274-292, April.
  15. Michael P. Keane & Kenneth I. Wolpin, 2002. "Estimating Welfare Effects Consistent with Forward-Looking Behavior. Part II: Empirical Results," Journal of Human Resources, University of Wisconsin Press, vol. 37(3), pages 600-622.
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