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The Review of Economics and Statistics Vol. 104 No. 2 2022

A Natural Experiment on Job Insecurity and Fertility in France

Andrew E. Clark1; Anthony Lepinteur2

1 Paris School of Economics-CNRS , · 2 University of Luxembourg

Abstract

Job insecurity can have wide-ranging consequences outside of the labor market. A 1999 rise in the French layoff tax paid by large private firms when they laid off older workers made younger workers less secure; this insecurity reduced their fertility by 3.7 percentage points (with a 95% confidence interval between 0.7 and 6.6 percentage points). Reduced fertility is found only 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.

DOI
10.1162/rest_a_00964
Volume
104
Issue
2
Pages
386-398
Language
en
Sources
openalex crossref

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