The Effect of Job Displacement on Couples' Fertility Decisions

Kristiina Huttunen and Jenni Kellokumpu

No 29, Working Papers from VATT Institute for Economic Research

Abstract: This paper analyzes the effects of job displacement on fertility using Finnish longitudinal employer-employee data (FLEED) matched to birth records. We distinguish between male and female job losses. We focus on couples where one spouse has lost his/her job due to a plant closure or mass layoff and follow them for several years both before and following the job loss. As a comparison group we use similar couples that were not affected by job displacement. In order to examine the possible channels through which job loss affects fertility we examine also the effect on earnings, employment and divorce. The results show that a woman's own job loss decreases fertility mainly for highly educated women. For every 100 displaced females there are approximately 4 less children born. A man's job loss has no significant impact on completed fertility.

Keywords: Plant closure, employment, earnings, divorce, fertility, Labour market, Työmarkkinat, Labor market and policies promoting economic growth, Työmarkkinat ja kasvua tukeva politiikka, J120 - Marriage; Marital Dissolution; Family Structure, J130 - Fertility; Family Planning; Child Care; Children; Youth, J650 - Unemployment Insurance; Severance Pay; Plant Closings, (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-dem and nep-lab
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Citations: View citations in EconPapers (1)

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https://www.doria.fi/handle/10024/148768

Related works:
Journal Article: The Effect of Job Displacement on Couples' Fertility Decisions (2016)
Working Paper: The Effect of Job Displacement on Couples' Fertility Decisions (2012)
Working Paper: The effect of job displacement on couples' fertility decisions (2012)
Working Paper: The Effect of Job Displacement on Couples’ Fertility Decisions (2012)
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