Cited by 223Gender, Labor, and Family DynamicsFamily Dynamics and RelationshipsLabor market dynamics and wage inequality

CLASH OF CAREER AND FAMILY: FERTILITY DECISIONS AFTER JOB DISPLACEMENT: Journal of the European Economic Association

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Del Bono, Emilia, Weber, Andrea, Winter-Ebmer, Rudolf·2012·Journal of the European Economic Association

Abstract

In this paper we investigate how fertility decisions respond to unexpected career interruptions which occur as a consequence of job displacement. Using an event study approach we compare the birth rates of displaced women with those of women unaffected by job loss after establishing 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 effects are largely explained by the response of white collar women. Using an instrumental variable approach we provide evidence that the reduction in fertility is not due to the income loss generated by unemployment but arises because 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.

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  1. Butz, W., Ward, M., 1979. The emergence of countercyclical us fertility. Amer- ican Economic Review 49, 318-328.
  2. Card, D., Chetty, R., Weber, A., 2007. Cash-on-hand and competing medels of intertemporal behavior: New evidence from the labor market. Quarterly Journal of Economics 122, 1511-1560.
  3. Cooney, T. M., Uhlenberg, P., 1989. Family-building patters of professional women: A comparison of lawyers, physicians, and postsecondary teachers. Journal of Marriage and the Family 51, 749-758.
  4. Hotz, V. J., Klerman, J. A., Willis, R. J., 1997. The economics of fertility in developed countries. In: Rosenzweig, M. R., Stark, O. (Eds.), Handbook of Population and Familiy Economics. North Holland, Amsterdam, pp. 275-347.
  5. Jacobson, L. S., LaLonde, R. J., Sullivan, D. G., 1993. Earning losses of dis- placed workers. American Economic Review 83, 685-709.
  6. Ruhm, C., 1991. Are workers permanently scarred by job displacements? Amer- ican Economic Review 81, 319-324.

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Authors
Del Bono, E., Weber, A., & Winter-Ebmer, R.
Affiliations
University of Mannheim (DE)
Venue
Journal of the European Economic Association
Published
2012-05-04
Volume
10
Issue
4
Pages
659-683
ISSN
1542-4766 (ISSN-L)
OpenAlex
W2150426159
Cited by
223
References
54
Citations by year
2026: 6 · 2025: 14 · 2024: 12 · 2023: 12 · 2022: 18 · 2021: 16 · 2020: 14 · 2019: 16 · 2018: 10 · 2017: 12 · 2016: 11 · 2015: 10 · 2014: 11 · 2013: 9 · 2012: 9
FWCI
30.57
Type
journal article
Language
en
Open access
Locations
  • Journal of the European Economic Association (publishedVersion)
  • SSRN Electronic Journal (acceptedVersion)
  • Institutional Repository (IHS Vienna) (acceptedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
  • Econstor (Econstor) (submittedVersion)
  • SSRN Electronic Journal (submittedVersion)
  • WU Research (submittedVersion)
Funders
Economic and Social Research Council (ES/H00811X/1)
Topics
  • Social Sciences › Gender Studies › Gender, Labor, and Family Dynamics
  • Social Sciences › Demography › Family Dynamics and Relationships
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Labor market dynamics and wage inequality
Keywords
reproductive decision-making, job displacement, plant closures, career interruption, female labor supply, vocational skills, birth rate

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