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A natural experiment on job insecurity and fertility in France

Clark, Andrew E. and Lepinteur, Anthony (2020) A natural experiment on job insecurity and fertility in France. CEP Discussion Papers (1686). Centre for Economic Performance, LSE, London, UK.

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Abstract

Job insecurity can have wide-ranging consequences outside of the labour market. We here argue that it reduces fertility amongst the employed. The 1999 rise in the French Delalande tax, paid by large private firms when they laid off workers aged over 50, produced an exogenous rise in job insecurity for younger workers in these firms. A difference-in-differences analysis of French ECHP data reveals that this greater job insecurity for these under-50s significantly reduced their probability of having a new child by 3.9 percentage points. Reduced fertility is only found at the intensive margin: job insecurity reduces family size but not the probability of parenthood itself. Our results also suggest negative selection into parenthood, as this fertility effect does not appear for low-income and less educated workers.

Item Type: Monograph (Discussion Paper)
Official URL: https://cep.lse.ac.uk/_new/publications/discussion...
Additional Information: © 2020 The Authors
Divisions: Centre for Economic Performance
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HQ The family. Marriage. Woman
JEL classification: I - Health, Education, and Welfare > I3 - Welfare and Poverty > I38 - Government Policy; Provision and Effects of Welfare Programs
J - Labor and Demographic Economics > J1 - Demographic Economics > J13 - Fertility; Family Planning; Child Care; Children; Youth
J - Labor and Demographic Economics > J1 - Demographic Economics > J18 - Public Policy
Date Deposited: 15 Jan 2021 00:48
Last Modified: 22 Jan 2021 00:35
URI: http://eprints.lse.ac.uk/id/eprint/108429

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