Work

Clash of Career and Family: Fertility Decisions After Job Displacement

Year: 2012

Type: article

Abstract: In this paper we investigate how fertility decisions respond to unexpected career interruptions which occur as a consequence of job displacement. Using an event study approach we compare the birth rates of displaced women with those of women unaffected by job loss after establishing the pre-displacement comparability of these groups. Our results reveal that job displacement reduces average fertility by 5 to 10% in both the short and medium term (3 and 6 years) and that these effects are largely explained by the response of white collar women. Using an instrumental variable approach we provide evidence that the reduction in fertility is not due to the income loss generated by unemployment but arises because displaced workers undergo a career interruption. These results are interpreted in the light of a model in which the rate of human capital accumulation slows down after the birth of a child and all specific human capital is destroyed upon job loss.

Source: Journal of the European Economic Association

DOI: 10.1111/j.1542-4774.2012.01074.x

Authors: Emilia Del Bono, Andrea Weber, Rudolf Winter-Ebmer

Institutions: University of Essex, IZA - Institute of Labor Economics, University of Mannheim, Institut für Höhere Studien - Institute for Advanced Studies (IHS)

Language: English

Topic: Gender, Labor, and Family Dynamics

Subfield: Gender Studies

Field: Social Sciences

Domain: Social Sciences

SDGs: Decent work and economic growth, Gender equality

Open Access status: green

Funder: Economic and Social Research Council