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Fertility Decisions and Employment Protection: The Unintended Consequences of the Italian Jobs Act

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  • De Paola, Maria

    (University of Calabria)

  • Nistico, Roberto

    (University of Naples Federico II)

  • Scoppa, Vincenzo

    (University of Calabria)

Abstract

We study the effect of a reduction in employment protection on fertility decisions. Using data from the Italian Labor Force Survey for the years 2013-2018, we analyze how the propensity to have a child has been affected by the 2015 Labor Market Reform, the so-called "Jobs Act", which has essentially reduced the employment protection for large-firm employees and leaved largely unchanged that for small-firm ones. We employ a Difference-in-Differences identification strategy and compare the average change over time in fertility decisions of women employed in large firms with the average change experienced by women employed in small firms. We find that women exposed to the reduction in employment protection have a 1.4 percentage point lower probability of having a child than unexposed women. A battery of robustness checks confirms this finding. We document large heterogeneous effects by marital status, parity, geographic areas as well as by the level of education and wage. Our findings help understand the potential unintended consequences that reforms introducing more labor market flexibility have on fertility decisions by increasing insecurity on career prospects.

Suggested Citation

  • De Paola, Maria & Nistico, Roberto & Scoppa, Vincenzo, 2020. "Fertility Decisions and Employment Protection: The Unintended Consequences of the Italian Jobs Act," IZA Discussion Papers 12991, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp12991
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    Cited by:

    1. Maria De Paola & Roberto Nisticò & Vincenzo Scoppa, 2024. "Workplace Peer Effects in Fertility Decisions," CSEF Working Papers 714, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    2. Lepinteur, Anthony & Clark, Andrew E. & D'Ambrosio, Conchita, 2024. "Unsettled: Job Insecurity Reduces Home-Ownership," IZA Discussion Papers 17038, Institute of Labor Economics (IZA).
    3. Paolo Emilio Mistrulli & Tommaso Oliviero & Zeno Rotondi & Alberto Zazzaro, 2023. "Job Protection and Mortgage Conditions: Evidence from Italian Administrative Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 85(6), pages 1211-1237, December.
    4. Pierre Cahuc & Pauline Carry & Franck Malherbet & Pedro S. Martins, 2023. "Spillover effects of employment protection," Nova SBE Working Paper Series wp655, Universidade Nova de Lisboa, Nova School of Business and Economics.
    5. Maria De Paola & Roberto Nisticò & Vincenzo Scoppa, 2021. "Academic Careers And Fertility Decisions," Working Papers 202101, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    6. Barbieri Teresa & Devicienti Francesco & Manello Alessandro & Vannoni Davide, 2022. "The effect of EPL on the internationalization of small firms," Working papers 078, Department of Economics, Social Studies, Applied Mathematics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino.
    7. Pieroni, Luca & d’Agostino, Giorgio & Lanari, Donatella & Scarlato, Margherita, 2023. "Temporary employment and fertility in Italy: The effect of two labor market reforms in the early 2000s," Economic Modelling, Elsevier, vol. 124(C).
    8. Elena Bastianelli & Raffaele Guetto & Daniele Vignoli, 2023. "Employment Protection Legislation, Labour Market Dualism, and Fertility in Europe," European Journal of Population, Springer;European Association for Population Studies, vol. 39(1), pages 1-27, December.
    9. Cantarella, Michele & Kavonius, Ilja Kristian, 2022. "Job polarisation and household borrowing," Working Paper Series 2683, European Central Bank.

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    More about this item

    Keywords

    labor market reform; employment protection legislation; fertility; difference-in-differences;
    All these keywords.

    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
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models

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