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Firms, Flexibility, and Fertility

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Abstract

This paper examines the impact of workplace flexibility on female labor market outcomes and fertility, with a particular focus on the Spanish labor market. Using a variety of data sources—including labor force surveys, time-use surveys, and administrative records—we document that rigid schedules, split-shift work arrangements, and long working hours increase the time cost of childcare, reducing women’s participation, wage growth, and career progression. Flexible arrangements, by contrast, facilitate work–family balance but are unevenly distributed across firms, sectors, and occupations. We present a simple model in which job inflexibility lowers both labor force participation and fertility, especially among mothers. We also provide a survey of the literature on the value of flexibility, the costs of family-friendly policies, and equilibrium models linking firm behavior to fertility decisions.

Suggested Citation

  • Nezih Guner & Ezgi Kaya & Alessandro Ruggieri & Virginia Sánchez-Marcos, 2025. "Firms, Flexibility, and Fertility," Working Papers wp2025_2525, CEMFI.
    • Handle: RePEc:cmf:wpaper:wp2025_2525
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    Keywords

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    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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