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The Effect of Job Displacement on Couples' Fertility Decisions

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  • Huttunen, Kristiina
  • Kellokumpu, Jenni
Abstract
This paper analyzes the effects of job displacement on fertility using Finnish longitudinal employer-employee data (FLEED) matched to birth records. We distinguish between male and female job losses. We focus on couples where one spouse has lost his/her job due to a plant closure or mass layoff and follow them for several years both before and following the job loss. As a comparison group we use similar couples that were not affected by job displacement. In order to examine the possible channels through which job loss affects fertility we examine also the effect on earnings, employment and divorce. The results show that a woman's own job loss decreases fertility mainly for highly educated women. For every 100 displaced females there are approximately 4 less children born. A man's job loss has no significant impact on completed fertility.

Suggested Citation

  • Huttunen, Kristiina & Kellokumpu, Jenni, 2012. "The Effect of Job Displacement on Couples' Fertility Decisions," Working Papers 29, VATT Institute for Economic Research.
    • Handle: RePEc:fer:wpaper:29
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    More about this item

    Keywords

    Plant closure; employment; earnings; divorce; fertility; Labour market; Työmarkkinat; Labor market and policies promoting economic growth; Työmarkkinat ja kasvua tukeva politiikka; J120 - Marriage; Marital Dissolution; Family Structure; J130 - Fertility; Family Planning; Child Care; Children; Youth; J650 - Unemployment Insurance; Severance Pay; Plant Closings;
    All these keywords.

    JEL classification:

    • 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
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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