The Effect of Fertility on the Decision of Abandoning the Labour Market: The Case of Spain
Ainhoa Herrarte Sanchez,
Julian Moral Carcedo and
Felipe Sáez ()
Additional contact information Felipe Sáez: Departamento de Análisis Económico: Teoría e Historia Económica. Universidad Autónoma de Madrid
Abstract:
Taking into account the negative relationship between fertility and female labour participation due to the necessity of dedicating more time to childcare, in this paper we analyse, with a logit model and using microdata from the Spanish Labour Force Survey, the effect of having a newly born child on the woman’s decision to abandon the labour market, considering household characteristics and other economic variables which affect their labour participation decision. Our results show that having a newborn increases the woman’s probability of abandoning the labour market. We also find that this probability is reduced if there are any grandparents living in the household.