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Clash of career and family: fertility decisions after job displacement

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  • Del Bono, Emilia
  • Winter-Ebmer, Rudolf
  • Weber, Andrea

Abstract

In this paper we investigate how fertility decisions respond to unexpected career interruptions which occur as a consequence of job displacement. Using an event study approach we compare the birth rates of displaced women with those of women unaffected by job loss after establishing the predisplacement comparability of these groups. Our results reveal that job displacement reduces average fertility by 5 to 10% in both the short and medium term (3 and 6 years) and that these effects are largely explained by the response of white collar women. Using an instrumental variable approach we provide evidence that the reduction in fertility is not due to the income loss generated by unemployment but arises because displaced workers undergo a career interruption. These results are interpreted in the light of a model in which the rate of human capital accumulation slows down after the birth of a child and all specific human capital is destroyed upon job loss.

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  • Del Bono, Emilia & Winter-Ebmer, Rudolf & Weber, Andrea, 2007. "Clash of career and family: fertility decisions after job displacement," ISER Working Paper Series 2007-33, Institute for Social and Economic Research.
  • Handle: RePEc:ese:iserwp:2007-33
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    Cited by:

    1. Maria K. Humlum & Jannie H.G. Kristoffersen & Rune Vejlin, 2012. "Timing of College Enrollment and Family Formation Decisions," Economics Working Papers 2012-01, Department of Economics and Business Economics, Aarhus University.
    2. Georg Wernhart & Rudolf Winter-Ebmer, 2012. "Do Austrian men and women become more equal? At least in terms of labour supply!," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 39(1), pages 45-64, February.
    3. Schröder, Mathis, 2013. "Jobless Now, Sick Later? Investigating the Long-term Consequences of Involuntary Job Loss on Health," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 5-15.
    4. Francesca Modena & Fabio Sabatini, 2012. "I would if I could: precarious employment and childbearing intentions in Italy," Review of Economics of the Household, Springer, vol. 10(1), pages 77-97, March.
    5. Jan Marcus, 2014. "Does Job Loss Make You Smoke and Gain Weight?," Economica, London School of Economics and Political Science, vol. 81(324), pages 626-648, October.
    6. Tominey, Emma, 2013. "Maternity Leave and the Responsiveness of Female Labor Supply to a Household Shock," IZA Discussion Papers 7462, Institute of Labor Economics (IZA).
    7. Francesca Modena & Concetta Rondinelli & Fabio Sabatini, 2014. "Economic Insecurity and Fertility Intentions: The Case of Italy," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(S1), pages 233-255, May.
    8. Schmitt, Christian, 2012. "A Cross-National Perspective on Unemployment and First Births," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 303-335.
    9. Emilia Bono & Andrea Weber & Rudolf Winter-Ebmer, 2015. "Fertility and economic instability: the role of unemployment and job displacement," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(2), pages 463-478, April.
    10. Bergemann, Annette & Grönqvist, Erik & Gudbjörnsdottir, Soffia, 2011. "The effects of job displacement on the onset and progression of diabetes," VfS Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis 48695, Verein für Socialpolitik / German Economic Association.
    11. 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.
    12. Peter Huber & Harald Oberhofer & Michael Pfaffermayr, 2014. "Job creation and the intra-distribution dynamics of the firm size distribution," Industrial and Corporate Change, Oxford University Press, vol. 23(1), pages 171-197, February.
    13. Emilia Bono & Andrea Weber & Rudolf Winter-Ebmer, 2015. "Fertility and economic instability: the role of unemployment and job displacement," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(2), pages 463-478, April.
    14. Peter Huber & Harald Oberhofer & Michael Pfaffermayr, 2012. "Who Creates Jobs? Estimating Job Creation Rates at the Firm Level," WIFO Working Papers 435, WIFO.
    15. Massimiliano Bratti & Konstantinos Tatsiramos, 2012. "The effect of delaying motherhood on the second childbirth in Europe," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(1), pages 291-321, January.
    16. Niedergesäss, Markus, 2013. "Employment, partnership and childbearing decisions of German women and men: A simultaneous hazards approach," University of Tübingen Working Papers in Business and Economics 51, University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics.
    17. Asphjell, Magne K. & Hensvik, Lena & Nilsson, J. Peter, 2013. "Businesses, Buddies, and Babies: Fertility and Social Interactions at Work," Working Paper Series, Center for Labor Studies 2013:8, Uppsala University, Department of Economics.
    18. Marcus Eliason, 2012. "Lost jobs, broken marriages," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(4), pages 1365-1397, October.
    19. Wiederhold, Simon & Nedelkoska, Ljubica & Neffke, Frank, 2013. "The Impact of Skill Mismatch on Earnings Losses after Job Displacement," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79739, Verein für Socialpolitik / German Economic Association.
    20. Martin Werding, 2014. "Children are costly, but raising them may pay," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 30(8), pages 253-276.

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