Clash of Career and Family: Fertility Decisions after Job Displacement

Emilia Del Bono, Andrea Weber and Rudolf Winter-Ebmer

No 3272, IZA Discussion Papers from Institute of Labor Economics (IZA)

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.

Keywords: human capital; plant closings; unemployment; fertility (search for similar items in EconPapers)
JEL-codes: J13 J24 J64 J65 (search for similar items in EconPapers)
Pages: 64 pages
Date: 2008-01
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Published - revised version published in: Journal of the European Economic Association, 2012, 10 (4), 659 - 683

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https://docs.iza.org/dp3272.pdf (application/pdf)

Related works:
Journal Article: CLASH OF CAREER AND FAMILY: FERTILITY DECISIONS AFTER JOB DISPLACEMENT (2012)
Working Paper: Clash of Career and Family: Fertility Decisions after Job Displacement (2008)
Working Paper: Clash of Career and Family: Fertility Decisions after Job Displacement (2008)
Working Paper: Clash of Career and Family. Fertility Decisions after Job Displacement (2008)
Working Paper: Clash of Career and Family: Fertility Decisions after Job Displacement (2008)
Working Paper: Clash of Career and Family - Fertility Decisions after Job Displacement (2008)
Working Paper: Clash of career and family: fertility decisions after job displacement (2007)
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