ISER Working Paper Series 2014-06
Fertility and economic instability: the role of unemployment and job displacement
11 Feb 2014
In this paper we study the separate effects of unemployment and job displacement on fertility in a sample of white collar women in Austria. Using an instrumental variables approach we show that unemployment incidence as such has no negative effect on fertility decisions, but the very fact of being displaced from a career-oriented job has. Fertility rates for women affected by a firm closure are significantly below those of a control group, even after six years, and this is so irrespective of the incidence or the duration of the associated unemployment spell.