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Fertility and economic instability: the role of unemployment and job displacement

In this paper, we study the separate effects of unemployment and job displacement on fertility in a sample of white collar women in Austria. Using an instrumental variable approach, we show that unemployment incidence as such has no negative effect on fertility decisions, but the very fact of being...

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Bibliographic Details
Published in:Journal of population economics 2015-04, Vol.28 (2), p.463-478
Main Authors: Bono, Emilia Del, Weber, Andrea, Winter-Ebmer, Rudolf
Format: Article
Language:English
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Summary:In this paper, we study the separate effects of unemployment and job displacement on fertility in a sample of white collar women in Austria. Using an instrumental variable approach, we show that unemployment incidence as such has no negative effect on fertility decisions, but the very fact of being displaced from a career-oriented job has. Fertility rates for women affected by a firm closure are significantly below those of a control group, even after 6 years, and this is so irrespective of the incidence or the duration of the associated unemployment spell.
ISSN:0933-1433
1432-1475
DOI:10.1007/s00148-014-0531-y