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dc.contributor.authorCAMILLI, Andrea
dc.contributor.authorLAGERBORG, Andresa
dc.date.accessioned2017-10-17T12:30:45Z
dc.date.available2017-10-17T12:30:45Z
dc.date.issued2017
dc.identifier.issn1725-6704
dc.identifier.urihttp://hdl.handle.net/1814/48484
dc.description.abstractUsing annual data for 20 OECD countries over the period 1961-2014, we study whether labor market institutions (LMIs) not targeted to maternity impact the total fertility rate (TFR). We distinguish between employment rigidities (ER) and real wage rigidities (RWR), since the former reduces and the latter amplifies the response of the business cycle to shocks. Panel regressions and principal component analysis reveal that ER, such as employment protection and union strength, increase TFR. On the other hand, RWR, proxied by the centralization of wage bargaining and unemployment benefits, reduce TFR. We also find evidence that unemployment volatility reduces fertility whereas wage volatility raises fertility. Thus, to the extent that labor market institutions affect unemployment and wage volatility, they may also affect fertility. We complement our analysis with a DSGE model that incorporates households' fertility decision as well as unemployment and wage rigidities. We find that downward wage rigidities amplify real contractions in response to negative demand shocks and lead to large drops in employment and fertility.en
dc.format.mimetypeapplication/pdfen
dc.language.isoenen
dc.relation.ispartofseriesEUI ECOen
dc.relation.ispartofseries2017/07en
dc.rightsinfo:eu-repo/semantics/openAccessen
dc.subjectFertilityen
dc.subjectLabor market institutionsen
dc.subjectFemale labor force participationen
dc.subjectIncome volatilityen
dc.subjectDSGEen
dc.subjectJ01en
dc.subjectJ08en
dc.subjectJ13en
dc.subjectJ41en
dc.subjectJ51en
dc.subjectD1en
dc.titleDo labor market institutions matter for fertility?en
dc.typeWorking Paperen


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