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Workplace Peer Effects in Fertility Decisions

Author

Listed:
  • Maria De Paola

    (University of Calabria, INPS Direzione Centrale Studi e Ricerche, Institute for the Study of Labor (IZA))

  • Roberto Nisticò

    (Università di Napoli Federico II, CSEF and IZA)

  • Vincenzo Scoppa

    (University of Calabria, Institute for the Study of Labor (IZA))

Abstract
This paper studies the effects on individuals’ fertility of the fertility behavior of their co-workers. Using matched employer-employee data from the Italian Social Security Institute (INPS) for the years 2016-2020, we estimate how the fertility rate among co-workers of the same age group and in the same occupation affects a worker’s likelihood of having a child. We exploit the variation in workplace peer fertility induced by the Jobs Act reform, which weakened employment protection – and therefore reduced the fertility rate – for the employees affected, i.e. those in larger firms hired on open-ended contracts after 7 March 2015. Our analysis focuses on similar workers hired before the Jobs Act and uses the fraction of co-workers hired after 7 March 2015 as an instrumental variable for average peer fertility. We find that a 1-percentage-point reduction in the average peer fertility at year t-1 leads to a reduction in the individual probability of having a child at year t by 0.3 to 0.4 percentage points, or a 10% reduction in average fertility. Heterogeneity analysis suggests that while workplace peer effects may operate primarily through social influence and social norms, information sharing and career concerns tend to attenuate individuals’ responses to the fertility of their co-workers, especially among women. Our findings also help to understand the potential spillovers that employment protection reforms may have on fertility rates through social interactions.

Suggested Citation

  • Maria De Paola & Roberto Nisticò & Vincenzo Scoppa, 2024. "Workplace Peer Effects in Fertility Decisions," CSEF Working Papers 714, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    • Handle: RePEc:sef:csefwp:714
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    More about this item

    Keywords

    Fertility; Peer Effects; Instrumental Variables; Employment Protection Legislation.;
    All these keywords.

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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