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The Baby Boom and WorldWar II: A Macroeconomic Analysis

Author

Listed:
  • Doepke, Matthias
  • Hazan, Moshe
  • Maoz, Yishay D.
Abstract
We argue that one major cause of the U.S. postwar baby boom was the rise in female labor supply duringWorldWar II.We develop a quantitative dynamic general equilibrium model with endogenous fertility and female labor force participation decisions. We use the model to assess the impact of the war on female labor supply and fertility in the decades following the war. For the war generation of women, the high demand for female labor brought about by mobilization leads to an increase in labor supply that persists after the war. As a result, younger women who reach adulthood in the 1950s face increased labor market competition, which impels them to exit the labor market and start having children earlier. The effect is amplified by the rise in taxes necessary to pay down wartime government debt. In our calibrated model, the war generates a substantial baby boom followed by a baby bust.

Suggested Citation

  • Doepke, Matthias & Hazan, Moshe & Maoz, Yishay D., 2013. "The Baby Boom and WorldWar II: A Macroeconomic Analysis," Foerder Institute for Economic Research Working Papers 275822, Tel-Aviv University > Foerder Institute for Economic Research.
    • Handle: RePEc:ags:isfiwp:275822
    DOI: 10.22004/ag.econ.275822
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    More about this item

    Keywords

    Financial Economics; Public Economics;

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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