The Dynamics of Employment Around Child Birth
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FENICs
Female Employment and Family Formation in National Institutional Contexts
The Dynamics of Employment Around Child Birth
January 2003
J.D. Vlasblom
J.J. Schippers
Utrecht School of Economics
Utrecht University
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FENICs
Female Employment and Family Formation in National Institutional Contexts
Patterns of Labour Supply, First Child
0102030405060708090
100
-24 -18 -12 -6 0 6 12 18 24
Months around childbirth
Per
cen
tag
e
Netherlands
Germany
United Kingdom
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FENICs
Female Employment and Family Formation in National Institutional Contexts
Effects of Institutions
Institutions provide Incentives (e.g. subsidies) Restrictions (availability)
Relevant institutions (cf. Koopmans): Child care Taxes Maternity leave
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FENICs
Female Employment and Family Formation in National Institutional Contexts
Measuring the Effect of Institutions
• Cross country comparison
• Types of welfare states
(cf. Thevenon)
• Changes over time
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FENICs
Female Employment and Family Formation in National Institutional Contexts
Changes in Institutions
• NetherlandsMore child care facilities since 1985
• GermanyLonger periods of maternity leaveHigher child related tax deductions
• United KingdomNo large changes
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FENICs
Female Employment and Family Formation in National Institutional Contexts
Estimations
• Multinomial logit model on “transition types”
• Estimation results show:
Higher educated women -> more YY, less YN
Older at first birth -> more YY, less YN
-> Changes over time in patterns
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FENICs
Female Employment and Family Formation in National Institutional Contexts
Estimated Changes Over Time
Netherlands Germany United Kingdom
1985 1999 1985 1999 1990 1999
YY
YN
NY
NN
20
33
0
47
83
12
0
4
42
35
2
21
9
83
0
8
42
18
4
36
28
18
32
21
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FENICs
Female Employment and Family Formation in National Institutional Contexts
Conclusions
• Human capital influences decisions• Changes in institutions affect decisions
Policy implications• Be aware of the effects on institutional changes on
decisions • Be aware of ‘indirect effects’ on income (cf. Davies)
and/or fertility (cf. Gonzales)