Why are fertility rates and female employment ratios positively correlated across O.C.D.E. countries?

• Autores: José María Da Rocha Álvarez, Luisa Fuster Pérez
• Localización: Working paper series ( RGEA ), Nº. 6, 2004
• Idioma: español
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• Resumen

  • We develop a quantitative theory of fertility and labor market participation de- cisions in order to investigate the role of labor market frictions to understand the positive association between fertility and employment among O.E.C.D. countries. We Þnd that unemployment induces females to postpone and space births which, in turn, reduces the total fertility rate. Moreover, diferences in female labor outcomes across the U.S. and Spain can account for the low fertility rate in Spain relative to the U.S.. We also Þnd that labor market frictions (low probability of Þnding a job) determine how employment and fertility are associated across economies. In particular, fertility and employment are positively associated across economies with low employment ratios (low probability of Þnding a job). On the other hand, fertility and employment are negatively associated across economies with a high probability of Þnding a job.