Life cycle employment and fertility across institutional environments

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.

The Causal Effects of the Number of Children on Female Employment - Do European Institutional and Gender Conditions Matter?

“…Notable exceptions are the studies by Del and Del Boca and Sauer (2009), who provided cross-country comparative evidence on the role of institutional arrangements for employment and fertility decisions in western Europe. However, they did not show the effects of family size on employment, and instead focused on the effects of policies on employment and fertility.…”

Children are costly, but raising them may pay

“…Attention has been given to the role of the macroeconomic environment, particularly fluctuations and trends in unemployment (Butz and Ward 1979;Adsera 2005;Del Bono, Weber, and Winter-Ebmer 2012). More recently, empirical research has shifted its focus towards investigating the impact of institutional factors, such as public regulation regarding parental leaves, benefits meant to replace wage earnings during periods of pregnancy and subsequent leaves of absence, or the public provision of child-care institutions (see, e.g., Kögel 2004;Björklund 2006;Lalive and Zweimüller 2009;Del Boca and Sauer 2009;or Bergemann and Riphahn 2009). Up to a point, researchers are now effectively evaluating the active role that the state is increasingly taking in this area.…”

The Life Cycle Model of the Fertility Choice in Hungary

“…For one, in line with the literature, we also use the simplifying assumption that borrowing or saving is not possible in either period (Arroyo -Zhang 1997;Hotz et. al 1997;Francesconi 2002;Del Boca -Sauer 2009;Bick 2010;Keane -Wolpin 2010). For this reason, we are unable to model either the flow of wealth between nations or long-term care for the child in this framework.…”

“…Keane and Wolpin (2010) also used a structurally estimated life cycle model to quantify the extent to which the difference in preference, the available welfare services and differences in labour market opportunities determined the life cycle decisions of Spanish women with various characteristics. Del Boca and Sauer (2009) estimated a decision rule derived from the life cycle model using data from Italy, France and Spain and drew conclusions from this on the link between the institutional environment, labour market flexibility, childcare institutions and activity and fertility decisions. Bick (2010) investigated two reforms recently introduced in Germany using a life cycle model calibrated to German data.…”