Life Cycle Employment and Fertility Across Institutional Environments

39 Pages Posted: 20 Aug 2006

See all articles by Robert M. Sauer

Robert M. Sauer

University of London - Royal Holloway College

Daniela Del Boca

University of Turin - Department of Economics; IZA Institute of Labor Economics; Centre for Household, Income, Labour and Demographic Economics (CHILD)

Date Written: September 17, 2006

Abstract

In this paper, we formulate a dynamic utility maximization model of female labor force participation and fertility choices and estimate approximate decision rules using data on married women in Italy, Spain and France. The pattern of estimated state dependence effects across countries is consistent with aggregate patterns in part-time employment and child care availability, suggesting that labor market rigidities and lack of child care options are important sources of state dependence. Simulations of the model reveal that Italian and Spanish women would substantially increase their participation rates were they to face the French institutional environment.

Keywords: Female Employment, Fertility, Child Care, Institutions, Decision Rules

JEL Classification: J2, J6, C3, D1

Suggested Citation

Sauer, Robert M. and Del Boca, Daniela, Life Cycle Employment and Fertility Across Institutional Environments (September 17, 2006). IZA Discussion Paper No. 2285. Available at SSRN: https://ssrn.com/abstract=925270

Robert M. Sauer (Contact Author)

University of London - Royal Holloway College ( email )

Senate House
Malet Street
London, TW20 0EX
United Kingdom

Daniela Del Boca

University of Turin - Department of Economics ( email )

Via Po, 53
Torino, 10124
Italy

IZA Institute of Labor Economics

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

Centre for Household, Income, Labour and Demographic Economics (CHILD)

Turin, TO
Italy

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