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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.

Suggested Citation

  • 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
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    Cited by:

    1. Hashimoto, Yuki & Kondo, Ayako, 2012. "Long-term effects of labor market conditions on family formation for Japanese youth," Journal of the Japanese and International Economies, Elsevier, vol. 26(1), pages 1-22.
    2. Deborah Goldschmidt & Wolfram Klosterhuber & Johannes F Schmieder, 2017. "Identifying couples in administrative data
      [Identifizierung von Ehepaaren in Administrativen Daten]
      ," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 50(1), pages 29-43, August.
    3. Kristiina Huttunen & Jarle Møen & Kjell G. Salvanes, 2018. "Job Loss and Regional Mobility," Journal of Labor Economics, University of Chicago Press, vol. 36(2), pages 479-509.
    4. Eva Mörk & Anna Sjögren & Helena Svaleryd, 2014. "Parental Unemployment and Child Health," CESifo Economic Studies, CESifo, vol. 60(2), pages 366-401.
    5. Fackler, Daniel & Hank, Eva, 2016. "Who buffers income losses after job displacement? The role of alternative income sources, the family, and the state," IWH Discussion Papers 28/2016, Halle Institute for Economic Research (IWH).
    6. repec:spr:demogr:v:54:y:2017:i:6:d:10.1007_s13524-017-0614-y is not listed on IDEAS
    7. Daniel Fackler & Eva Hank, 2016. "Who Buffers Income Losses after Job Displacement? The Role of Alternative Income Sources, the Family, and the State," SOEPpapers on Multidisciplinary Panel Data Research 863, DIW Berlin, The German Socio-Economic Panel (SOEP).
    8. Arntz, Melanie & Gathmann, Christina, 2014. "Permanent Changes in the Wage Structure and the East German Fertility Crisis," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100464, Verein für Socialpolitik / German Economic Association.
    9. Liepmann, Hannah, 2018. "The Impact of a Negative Labor Demand Shock On Fertility - Evidence From the Fall of the Berlin Wall," Rationality and Competition Discussion Paper Series 69, CRC TRR 190 Rationality and Competition.
    10. Laukkonen, Marja-Lisa, 2018. "Parental Job Loss and Application Decisions in Finnish Post-Secondary Education," ETLA Working Papers 55, The Research Institute of the Finnish Economy.
    11. Malte Preuss & Juliane Hennecke, 2017. "Biased by Success and Failure: How Unemployment Shapes Stated Locus of Control," SOEPpapers on Multidisciplinary Panel Data Research 943, DIW Berlin, The German Socio-Economic Panel (SOEP).
    12. 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.
    13. Hank, Eva & Fackler, Daniel, 2017. "Who buffers income losses after job displacement? The role of alternative income sources, the family, and the state," Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168098, Verein für Socialpolitik / German Economic Association.
    14. Hannah Liepmann, 2016. "The Impact of a Negative Labor Demand Shock on Fertility - Evidence from the Fall of the Berlin Wall," SFB 649 Discussion Papers SFB649DP2016-042, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
    15. Eliason, Marcus & Hensvik, Lena & Kramarz, Francis & Nordström Skans, Oskar, 2017. "The causal impact of social Connections on firms' outcomes," Working Paper Series 2017:11, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    16. Eerola, Essi & Lyytikäinen, Teemu, 2015. "On the role of public price information in housing markets," Regional Science and Urban Economics, Elsevier, vol. 53(C), pages 74-84.
    17. Marcus Eliason, 2012. "Lost jobs, broken marriages," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(4), pages 1365-1397, October.
    18. Verho, Jouko, 2017. "Economic crises and unemployment persistence: Analysis of job losses during the Finnish 1990s recession," Working Papers 99, VATT Institute for Economic Research.

    More about this item

    JEL classification:

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

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