Changing Fertility Rates in Developed Countries. The Impact of Labor Market Institutions

Posted: 15 Apr 2004

See all articles by Alícia Adserà

Alícia Adserà

Princeton University - Princeton School of Public and International Affairs; Princeton University - Office of Population Research (OPR); IZA Institute of Labor Economics

Abstract

During the last two decades fertility rates have decreased and have become positively correlated with female participation rates across OECD countries. I use a panel of 23 OECD nations to study how different labor market arrangements shaped these trends. High unemployment and unstable contracts, common in Southern Europe, depress fertility, particularly of younger women. To increase lifetime income though early skill-acquisition and minimize unemployment risk, young women postpone (or abandon) childbearing. Further, both a large share of public employment, by providing employment stability, and generous maternity benefits linked to previous employment, such as those in Scandinavia, boost fertility of the 25-29 and 30-34 year old women.

Keywords: Fertility, OECD, unemployment, labor markets, labor participation

JEL Classification: J13, J2, J6

Suggested Citation

Adsera, Alicia, Changing Fertility Rates in Developed Countries. The Impact of Labor Market Institutions. Available at SSRN: https://ssrn.com/abstract=530262

Alicia Adsera (Contact Author)

Princeton University - Princeton School of Public and International Affairs ( email )

Princeton University
Princeton, NJ 08544

Princeton University - Office of Population Research (OPR) ( email )

200 Wallace Hall
NJ 08544
United States

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

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