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Fertility and its Consequence on Family Labour Supply

Author

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  • Kim, Jungho

    () (Ajou University)

  • Aassve, Arnstein

    () (Bocconi University)

Abstract

While a large body of literature focuses on how fertility affects female labour market participation, there are relatively few studies that examine the effect of fertility on male labour market participation. Even if the burden of child care falls mainly on women, an exogenous increase in fertility is likely to change the optimal allocation of time, therefore, the labour supply decision of both female and male in a household. This paper analyses how an exogenous increase in fertility affects labour market participation of men and women in Indonesia – a country that has seen dramatic changes in the labour market over recent decades. The finding is that women reduce their working hours in response to the higher fecundity in both rural and urban areas in Indonesia. On the other hand, the higher fecundity leads to men’s increasing their working hours only in rural areas. The higher degree of specialization in response to fertility in rural areas is driven mainly by the differences in the cost of childcare rather than the characteristics of occupation or household bargaining power.

Suggested Citation

  • Kim, Jungho & Aassve, Arnstein, 2006. "Fertility and its Consequence on Family Labour Supply," IZA Discussion Papers 2162, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp2162
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    References listed on IDEAS

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    Cited by:

    1. Peter Glick & Christopher Handy & David E. Sahn, 2015. "Schooling, marriage, and age at first birth in Madagascar," Population Studies, Taylor & Francis Journals, vol. 69(2), pages 219-236, July.
    2. Bruno Arpino & Arnstein Aassve, 2013. "Estimating the causal effect of fertility on economic wellbeing: data requirements, identifying assumptions and estimation methods," Empirical Economics, Springer, vol. 44(1), pages 355-385, February.
    3. David Canning & Sangeeta Raja & Abdo S. Yazbeck, 2015. "Africa's Demographic Transition," World Bank Publications, The World Bank, number 22036.
    4. Beyza Ural Marchand & Ray Rees & Raymond Riezman, 2011. "Globalization, Gender and Development: The Effect of Parental Labor Supply on Child Schooling," CESifo Working Paper Series 3341, CESifo Group Munich.
    5. Tobing, Elwin, 2011. "Taxation, human capital formation, and long-run growth with private investment in education," Journal of Asian Economics, Elsevier, vol. 22(1), pages 48-60, February.
    6. Ewa Cukrowska-Torzewska, 2015. "She Cares and He Earns? The Family Gap in Poland," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 42.
    7. Marc Frenette, 2011. "How does the stork delegate work? Childbearing and the gender division of paid and unpaid labour," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(3), pages 895-910, July.

    More about this item

    Keywords

    fertility; labour supply; division of labour; Indonesia;

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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