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The Impact of a Negative Labor Demand Shock On Fertility - Evidence From the Fall of the Berlin Wall

Author

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  • Liepmann, Hannah

    (Humboldt University Berlin)

Abstract

How does a negative labor demand shock impact fertility? I analyze this question in the context of the East German fertility decline after the fall of the Berlin Wall in 1989. I exploit differential pressure for restructuring across East German industries which led to unexpected, exogenous, and permanent changes to labor demand. I find that throughout the 1990s, women more severely impacted by the demand shock had relatively more children than their less-severely-impacted counterparts. Thus, the demand shock did not only depress the aggregate fertility level but also changed the composition of mothers. My paper shows that these two effects do not necessarily operate in the same direction.

Suggested Citation

  • Liepmann, Hannah, 2018. "The Impact of a Negative Labor Demand Shock On Fertility - Evidence From the Fall of the Berlin Wall," Rationality and Competition Discussion Paper Series 69, CRC TRR 190 Rationality and Competition.
  • Handle: RePEc:rco:dpaper:69
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    References listed on IDEAS

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    More about this item

    Keywords

    fertility; labor demand shock; industrial restructuring; east germany;

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • P36 - Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty

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