Life Cycle Employment and Fertility Across Institutional Environments

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IZA Seminar

Place: Schaumburg-Lippe-Str. 9, 53113 Bonn

Date: 05.06.2007, 12:15 - 13:30

   

Presentation by 

Robert M. Sauer (Royal Holloway, University of London)
   

Abstract:

In this paper, we formulate a dynamic utility maximization model of female labor force participation and fertility choices and estimate approximate decision rules using data on married women in Italy, Spain and France. We find that first-order state dependence is the most important aspect of female labor supply behavior in all three countries. The ranking of state dependence effects across countries is correlated with aggregate measures of labor market flexibility and child care availability. Simulations of the model suggest that Italian and Spanish women would substantially increase their participation rates were they to face the more flexible French institutional environment.

   
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