Labor Market Frictions and Lowest Low Fertility

Virginia Sanchez-Marcos, Ezgi Kaya and Nezih Guner

No 1015, 2017 Meeting Papers from Society for Economic Dynamics

Abstract: How does the dual labor market structure, i.e. the presence of jobs with temporary and permanent contracts, affect the fertility behavior of women in Spain? Using data from the Spanish Social Security Records, we first show that having a temporary contract has a significant and negative effect on the probability that a woman has her first birth. A highly-educated women with permanent contract is twice more likely to have a birth compared to a similar woman with a temporary contract. Second., we show that having a child lowers the probability of being promoted from a temporary to permanent contract and the effect is strongest for highly-educated women. We next build a life-cycle model in which married women decide whether to work or not as well as how many children to have and when to have them. In the model economy, all agents start their labor careers with temporary jobs and children affect the probability of being promoted to a permanent jobs negatively. Given the cost of having children, both in terms of time and money as well as in terms of labor market implications, women make their fertility choices. We use this model to quantify how the dual labor market structure affects fertility decisions as well as potential effects of labor market reforms on fertility.

Date: 2017
New Economics Papers: this item is included in nep-dem, nep-dge and nep-eur
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Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Labor Market Frictions and Lowest Low Fertility (2022)
Working Paper: Labor Market Frictions and Lowest Low Fertility (2019)
Working Paper: Labor Market Frictions and Lowest Low Fertility (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed017:1015

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