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The effect of female participation on fertility in Spain : how does it change as the birth comes closer

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  • Alba, Alfonso
  • Álvarez Llorente, Gema
  • Carrasco, Raquel

Abstract

In this paper we anaIyze the effect of female labor force participation on fertility decisions. We focus on two issues that emerge when estimating such effect: (i) the endogeneity between fertility and participation; and (ii) the period in which participation is measured with respect to fertility. We account for the first problem by using an empirical model based on the assumption that women decide on labor force participation and childbearing in response to incentives provided by prices and incomes. The second issue is addressed exploiting the panel structure of our data (matched EPA files). which allow us to measure women labor force participation at several points in the time preceding a birth. Our results show that it is important to account for the endogeneity between participation and fertility and that women's attitude toward the labour market changes along the pregnancy.

Suggested Citation

  • Alba, Alfonso & Álvarez Llorente, Gema & Carrasco, Raquel, 2000. "The effect of female participation on fertility in Spain : how does it change as the birth comes closer," UC3M Working papers. Economics 7219, Universidad Carlos III de Madrid. Departamento de Economía.
    • Handle: RePEc:cte:werepe:7219
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    1. James J. Heckman & Thomas E. MaCurdy, 1985. "A Simultaneous Equations Linear Probability Model," Canadian Journal of Economics, Canadian Economics Association, vol. 18(1), pages 28-37, February.
    2. Carrasco, Raquel, 2001. "Binary Choice with Binary Endogenous Regressors in Panel Data: Estimating the Effect of Fertility on Female Labor Participation," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(4), pages 385-394, October.
    3. Gary S. Becker, 1960. "An Economic Analysis of Fertility," NBER Chapters, in: Demographic and Economic Change in Developed Countries, pages 209-240, National Bureau of Economic Research, Inc.
    4. Easterlin, Richard A., 1987. "Birth and Fortune," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226180328.
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