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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 register data. We focus on couples where one spouse has lost a job due to a plant closure and follow them for several years before and following the job loss. The results show that female job loss decreases fertility. For every 100 displaced females, there are three fewer children born. Male job loss has no impact on fertility despite resulting in a stronger decrease in family income than female job loss. This indicates that the income effect is not the mechanism through which job displacement influences fertility.

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  • Kristiina Huttunen & Jenni Kellokumpu, 2016. "The Effect of Job Displacement on Couples' Fertility Decisions," Journal of Labor Economics, University of Chicago Press, vol. 34(2), pages 403-442.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/683645
    DOI: 10.1086/683645
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    More about this item

    JEL classification:

    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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