Fertility and its Consequence on Family Labour Supply

34 Pages Posted: 20 Jun 2006

See all articles by Jungho Kim

Jungho Kim

Korea Development Institute; University of Vienna - Vienna Institute of Demography; IZA Institute of Labor Economics

Arnstein Aassve

University of Essex - Institute for Social and Economic Research (ISER)

Date Written: June 2006

Abstract

While a large body of literature focuses on how fertility affects female labour market participation, there are relatively few studies that examine the effect of fertility on male labour market participation. Even if the burden of child care falls mainly on women, an exogenous increase in fertility is likely to change the optimal allocation of time, therefore, the labour supply decision of both female and male in a household. This paper analyses how an exogenous increase in fertility affects labour market participation of men and women in Indonesia - a country that has seen dramatic changes in the labour market over recent decades. The finding is that women reduce their working hours in response to the higher fecundity in both rural and urban areas in Indonesia. On the other hand, the higher fecundity leads to men's increasing their working hours only in rural areas. The higher degree of specialization in response to fertility in rural areas is driven mainly by the differences in the cost of childcare rather than the characteristics of occupation or household bargaining power.

Keywords: fertility, labour supply, division of labour, Indonesia

JEL Classification: J13, J22, J24

Suggested Citation

Kim, Jungho and Aassve, Arnstein, Fertility and its Consequence on Family Labour Supply (June 2006). IZA Discussion Paper No. 2162, Available at SSRN: https://ssrn.com/abstract=910227

Jungho Kim (Contact Author)

Korea Development Institute ( email )

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Korea, Republic of (South Korea)
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University of Vienna - Vienna Institute of Demography ( email )

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Vienna, 1040
Austria

HOME PAGE: http://www.oeaw.ac.at/vid/staff/staff_jungho_kim.shtml

IZA Institute of Labor Economics

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

Arnstein Aassve

University of Essex - Institute for Social and Economic Research (ISER) ( email )

Wivenhoe Park
Colchester CO4 3SQ
United Kingdom

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