Fertility, Female Labor Force Participation, and the Demographic Dividend
43 Pages Posted: 5 Nov 2007 Last revised: 14 Aug 2022
Date Written: November 2007
Abstract
We estimate the effect of fertility on female labor force participation in a cross-country panel data set using abortion legislation as an instrument for fertility. We find a large negative effect of the fertility rate on female labor force participation. The direct effect is concentrated among those aged 20-39, but we find that cohort participation is persistent over time giving an effect among older women. We present a simulation model of the effect of fertility reduction on income per capita, taking into account these changes in female labor force participation as well as population numbers and age structure.
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