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Economic Uncertainty and Fertility

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  • Gözgör, Giray
  • Bilgin, Mehmet Huseyin
  • Rangazas, Peter

Abstract

In this paper, we conduct an empirical study of the effect of uncertainty on fertility. The precautionary motive for saving predicts that an increase in uncertainty increases saving by reducing both consumption and fertility. We use a new measure of uncertainty, the World Uncertainty Index, and focus on data from 126 countries for the period from 1996 to 2017. The empirical findings indicate that uncertainty shocks decrease the fertility rate. This evidence is robust to different model specifications and econometric techniques as well as to the inclusion of various controls.

Suggested Citation

  • Gözgör, Giray & Bilgin, Mehmet Huseyin & Rangazas, Peter, 2019. "Economic Uncertainty and Fertility," GLO Discussion Paper Series 360, Global Labor Organization (GLO).
  • Handle: RePEc:zbw:glodps:360
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    References listed on IDEAS

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    More about this item

    Keywords

    Fertility; Uncertainty; WUI Index; Precautionary Saving; Business Cycle; Panel Data Estimation Techniques;

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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