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Clash of Career and Family: Fertility Decisions after Job Displacement

Emilia Del Bono (), Andrea Weber () and Rudolf Winter-Ebmer ()

No 2008-02, Economics working papers from Department of Economics, Johannes Kepler University Linz, Austria

Abstract: In this paper we investigate how fertility decisions respond to unex- pected career interruptions which occur as a consequence of job displace- ment. Using an event study approach we compare the birth rates of dis- placed women with those of women una®ected by job loss after establish- ing 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 e®ects are largely explained by the response of white collar women. Using an instrumen- tal variable approach we provide evidence that the reduction in fertility is not due to the income loss generated by unemployment but arises be- cause 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: fertility; unemployment; plant closings; human capital (search for similar items in EconPapers)
JEL-codes: J13 J64 J65 J24 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-hap and nep-lab
Date: 2008-01
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Citations: View citations in EconPapers (8) Track citations by RSS feed

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http://www.econ.jku.at/papers/2008/wp0802.pdf (application/pdf)

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