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Job Stability and Fertility Intentions of Young Adults in Europe: Does Labor Market Legislation Matter?

Tatiana Karabchuk ()

No 2018-15, CEI Working Paper Series from Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University

Abstract: Birth rates have declined dramatically in many European countries during the last 40 years. Postponed marriages and delays in childbirth resulting from the global changes in values can only partially explain this decline. A main reason for the decline is the rise in job and income instability caused by labor market polarization. The growth of flexible market relations increased the uncertainty and job instability that are crucial to childbirth planning for young adults. This paper aims to disclose the impact of job instability on the fertility intentions of young European adults by focusing on employment protection legislation (EPL). The empirical analysis is grounded in European Social Survey data of 2004 and 2010 for 27 countries. The results of the multilevel modeling show that job instability measured as temporary employment, informal work, and unemployment decrease fertility intentions. Unemployed young adults plan less for having their first child under a rigid labor market system. Unexpectedly, temporary and informally employed young people decrease their fertility intentions in countries with low EPL rates.

Keywords: job instability; fertility intentions; employment type; employment protection legislation; dual labor markets; Europe (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur and nep-iue
Date: 2018-12
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