Clash of Career and Family: Fertility Decisions after Job Displacement

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 0802

Classification and Topics

• Classification: Wirtschaft ; Fertility; Family Planning; Child Care; Children; Youth ; Unemployment: Models, Duration, Incidence, and Job Search ; Unemployment Insurance; Severance Pay; Plant Closings ; Human Capital; Skills; Occupational Choice; Labor Productivity
• Subject: fertility ; unemployment ; plant closings ; human capital ; Frauenarbeitslosigkeit ; Fruchtbarkeit ; Erwerbsverlauf ; Humankapital ; Liquidation ; Familienpolitik ; Österreich

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bono, Emilia Del ; Weber, Andrea ; Winter-Ebmer, Rudolf
• Event: Veröffentlichung
• (who): Johannes Kepler University of Linz, Department of Economics
• (where): Linz
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/73566
• Last update: 10.03.2025, 11:44 AM CET