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Welfare state context, female earnings and childbearing

Author

Listed:
  • Gunnar Andersson

    (Max Planck Institute for Demographic Research, Rostock, Germany)

  • Michaela R. Kreyenfeld

    (Max Planck Institute for Demographic Research, Rostock, Germany)

  • Tatjana Mika

Abstract

This paper investigates the role of female earnings in childbearing decisions in two very different European contexts. By applying event history techniques to German and Danish register data during 1981-2001, we demonstrate how female earnings relate to first, second and third birth rates. Our study shows that female earnings are rather positively associated with fertility in Denmark, while the relationship is the opposite in West Germany. We interpret our findings based on our observation that Danish social policies tend to encourage Danish women to become established in the labor market before having children, while German policies during the 1980s and 1990s were not designed to encourage maternal employment.

Suggested Citation

  • Gunnar Andersson & Michaela R. Kreyenfeld & Tatjana Mika, 2009. "Welfare state context, female earnings and childbearing," MPIDR Working Papers WP-2009-026, Max Planck Institute for Demographic Research, Rostock, Germany.
    • Handle: RePEc:dem:wpaper:wp-2009-026
    DOI: 10.4054/MPIDR-WP-2009-026
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    References listed on IDEAS

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    2. Gunnar Andersson & Marit Rønsen & Lisbeth B. Knudsen & Trude Lappegård & Gerda Neyer & Kari Skrede & Kathrin Teschner & Andres Vikat, 2009. "Cohort fertility patterns in the Nordic countries," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 20(14), pages 313-352.
    3. Heckman, James J & Walker, James R, 1990. "The Relationship between Wages and Income and the Timing and Spacing of Births: Evidence from Swedish Longitudinal Data," Econometrica, Econometric Society, vol. 58(6), pages 1411-1441, November.
    4. Esping-Andersen, Gosta, 1999. "Social Foundations of Postindustrial Economies," OUP Catalogue, Oxford University Press, number 9780198742005.
    5. Pedro Mira & Namkee Ahn, 2002. "A note on the changing relationship between fertility and female employment rates in developed countries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(4), pages 667-682.
    6. 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.
    7. Mary Borg, 1989. "The Income-Fertility Relationship: Effect of the Net Price of a Child," Demography, Springer;Population Association of America (PAA), vol. 26(2), pages 301-310, May.
    8. Neyer, Gerda, 2003. "Family Policies and Low Fertility in Western Europe," Discussion Paper 161, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    9. Francesco C. Billari & Hans-Peter Kohler, 2002. "Patterns of lowest-low fertility in Europe," MPIDR Working Papers WP-2002-040, Max Planck Institute for Demographic Research, Rostock, Germany.
    10. Marit Rønsen, 2004. "Fertility and Public Policies - Evidence from Norway and Finland," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 10(6), pages 143-170.
    11. Rondinelli, Concetta & Aassve, Arnstein & C. Billari, Francesco, 2006. "Income and childbearing decisions: evidence from Italy," ISER Working Paper Series 2006-06, Institute for Social and Economic Research.
    12. Gerda R. Neyer, 2003. "Family policies and low fertility in Western Europe," MPIDR Working Papers WP-2003-021, Max Planck Institute for Demographic Research, Rostock, Germany.
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    Cited by:

    1. Karel Neels & Zita Theunynck & Jonas Wood, 2013. "Economic recession and first births in Europe: recession-induced postponement and recuperation of fertility in 14 European countries between 1970 and 2005," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 58(1), pages 43-55, February.
    2. Tom Kornstad & Marit Rønsen, 2018. "Women’s Wages and Fertility Revisited Evidence from Norway," European Journal of Population, Springer;European Association for Population Studies, vol. 34(4), pages 491-518, October.
    3. Anna Matysiak, 2011. "Fertility Developments In Central And Eastern Europe: The Role Of Work–Family Tensions," Demográfia English Edition, Hungarian Demographic Research Institute, vol. 54(5), pages 7-30.
    4. Tom Kornstad & Marit Rønsen, 2014. "Women's wages and fertility revisited. Evidence from Norway," Discussion Papers 784, Statistics Norway, Research Department.
    5. Alícia Adserà, 2011. "The interplay of employment uncertainty and education in explaining second births in Europe," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 25(16), pages 513-544.
    6. Rannveig V. Kaldager, 2014. "The relationship between earnings and first birth probability among Norwegian men and women 1994-2008," Discussion Papers 787, Statistics Norway, Research Department.
    7. Michaela R. Kreyenfeld & Anja Vatterrott, 2013. "Geschlechtsspezifische Arbeitsmarktsegregation und Geburtenverhalten: neue Befunde auf Basis der „Biografiedaten ausgewählter Sozialversicherungsträger in Deutschland“ (BASiD)," MPIDR Working Papers WP-2013-009, Max Planck Institute for Demographic Research, Rostock, Germany.
    8. Nick Parr, 2011. "The contribution of increases in family benefits to Australia’s early 21st-century fertility increase: An empirical analysis," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 25(6), pages 215-244.
    9. Marika Jalovaara & Anneli Miettinen, 2013. "Does his paycheck also matter?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 28(31), pages 881-916.
    10. Michaela R. Kreyenfeld & Gunnar Andersson, 2013. "Socioeconomic differences in the unemployment and fertility nexus: a comparison of Denmark and Germany," MPIDR Working Papers WP-2013-008, Max Planck Institute for Demographic Research, Rostock, Germany.
    11. Andersen, Signe Hald & Özcan, Berkay, 2021. "The effects of unemployment on fertility," LSE Research Online Documents on Economics 109007, London School of Economics and Political Science, LSE Library.

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    More about this item

    Keywords

    Denmark; fertility;

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • Z0 - Other Special Topics - - General

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