IDEAS home Printed from https://ideas.repec.org/a/eee/labeco/v87y2024ics0927537123001677.html
   My bibliography  Save this article

Not the right time for children: Unemployment, fertility, and abortion

Author

Listed:
  • Cavallini, Flavia

Abstract

I analyze the effect of local unemployment rates on fertility rates, abortion rates, and the abortions to pregnancies ratio, combining population statistics and administrative data on induced abortions performed in Italy between 2004 and 2016. Using a shift-share instrument measuring labor demand, I exploit demand-driven shocks to unemployment. The findings indicate that both childbearing and abortions behave pro-cyclically, thus suggesting that changes in fertility rates arise not just from changes in planned pregnancy but also from a higher incidence of abortions. These effects are driven by women above 25 years old, and are particularly large in the 35–49 age group, while younger women are largely unaffected.

Suggested Citation

  • Cavallini, Flavia, 2024. "Not the right time for children: Unemployment, fertility, and abortion," Labour Economics, Elsevier, vol. 87(C).
  • Handle: RePEc:eee:labeco:v:87:y:2024:i:c:s0927537123001677
    DOI: 10.1016/j.labeco.2023.102492
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0927537123001677
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.labeco.2023.102492?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Rajeev Dehejia & Adriana Lleras-Muney, 2004. "Booms, Busts, and Babies' Health," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(3), pages 1091-1130.
    2. repec:bla:revinw:v:60:y:2014:i::p:s233-s255 is not listed on IDEAS
    3. Marie, Olivier & Zwiers, Esmée, 2022. "Religious Barriers to Birth Control Access," CEPR Discussion Papers 17427, C.E.P.R. Discussion Papers.
    4. Emilia Del Bono & Andrea Weber & Rudolf Winter-Ebmer, 2012. "Clash Of Career And Family: Fertility Decisions After Job Displacement," Journal of the European Economic Association, European Economic Association, vol. 10(4), pages 659-683, August.
    5. Stuhler, Jan & Jaeger, David & Ruist, Joakim, 2018. "Shift-Share Instruments and the Impact of Immigration," CEPR Discussion Papers 12701, C.E.P.R. Discussion Papers.
    6. Dan Anderberg & Helmut Rainer & Jonathan Wadsworth & Tanya Wilson, 2016. "Unemployment and Domestic Violence: Theory and Evidence," Economic Journal, Royal Economic Society, vol. 126(597), pages 1947-1979, November.
    7. Fischer, Stefanie & Royer, Heather & White, Corey, 2018. "The impacts of reduced access to abortion and family planning services on abortions, births, and contraceptive purchases," Journal of Public Economics, Elsevier, vol. 167(C), pages 43-68.
    8. Myers, Caitlin & Ladd, Daniel, 2020. "Did parental involvement laws grow teeth? The effects of state restrictions on minors’ access to abortion," Journal of Health Economics, Elsevier, vol. 71(C).
    9. Libertad González & Sofia Karina Trommlerová, 2023. "Cash Transfers and Fertility: How the Introduction and Cancellation of a Child Benefit Affected Births and Abortions," Journal of Human Resources, University of Wisconsin Press, vol. 58(3), pages 783-818.
    10. Deborah Haas-Wilson, 1996. "The Impact of State Abortion Restrictions on Minors' Demand for Abortions," Journal of Human Resources, University of Wisconsin Press, vol. 31(1), pages 140-158.
    11. Ana Tur-Prats, 2019. "Family Types and Intimate Partner Violence: A Historical Perspective," The Review of Economics and Statistics, MIT Press, vol. 101(5), pages 878-891, December.
    12. Kirill Borusyak & Peter Hull & Xavier Jaravel, 2022. "Quasi-Experimental Shift-Share Research Designs," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(1), pages 181-213.
    13. Chiara Ludovica Comolli, 2017. "The fertility response to the Great Recession in Europe and the United States: Structural economic conditions and perceived economic uncertainty," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 36(51), pages 1549-1600.
    14. Aksoy Cevat Giray, 2016. "The Effects of Unemployment on Fertility: Evidence from England," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(2), pages 1123-1146, April.
    15. Rafael González-Val & Miriam Marcén, 2018. "Unemployment, marriage and divorce," Applied Economics, Taylor & Francis Journals, vol. 50(13), pages 1495-1508, March.
    16. Hotz, V Joseph & Miller, Robert A, 1988. "An Empirical Analysis of Life Cycle Fertility and Female Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 91-118, January.
    17. Francesca Modena & Concetta Rondinelli & Fabio Sabatini, 2014. "Economic Insecurity and Fertility Intentions: The Case of Italy," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(S1), pages 233-255, May.
    18. repec:pri:cheawb:adriana_booms.pdf is not listed on IDEAS
    19. Dan Brown & Elisabetta De Cao, 2017. "The Impact of Unemployment on Child Maltreatment in the United States," Working Papers 106, "Carlo F. Dondena" Centre for Research on Social Dynamics (DONDENA), Università Commerciale Luigi Bocconi.
    20. David H. Autor & Mark G. Duggan, 2003. "The Rise in the Disability Rolls and the Decline in Unemployment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(1), pages 157-206.
    21. Kristiina Huttunen & Jenni Kellokumpu, 2016. "The Effect of Job Displacement on Couples' Fertility Decisions," Journal of Labor Economics, University of Chicago Press, vol. 34(2), pages 403-442.
    22. Hal Snarr & Jeffrey Edwards, 2009. "Does income support increase abortions?," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 33(4), pages 575-599, November.
    23. Bitler, Marianne & Zavodny, Madeline, 2001. "The effect of abortion restrictions on the timing of abortions," Journal of Health Economics, Elsevier, vol. 20(6), pages 1011-1032, November.
    24. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle.
    25. Del Boca, Daniela & Sauer, Robert M., 2009. "Life cycle employment and fertility across institutional environments," European Economic Review, Elsevier, vol. 53(3), pages 274-292, April.
    26. Marta De Philippis & Andrea Locatelli & Giulio Papini & Roberto Torrini, 2022. "Italian economic growth and the North-South gap: Historical trends and future projections in light of the recent demographic scenarios," Questioni di Economia e Finanza (Occasional Papers) 683, Bank of Italy, Economic Research and International Relations Area.
    27. Rodrigo Ad~ao & Michal Koles'ar & Eduardo Morales, 2018. "Shift-Share Designs: Theory and Inference," Papers 1806.07928, arXiv.org, revised Aug 2019.
    28. Rafael González-Val & Miriam Marcén, 2017. "Divorce and the business cycle: a cross-country analysis," Review of Economics of the Household, Springer, vol. 15(3), pages 879-904, September.
    29. Jessamyn Schaller, 2016. "Booms, Busts, and Fertility: Testing the Becker Model Using Gender-Specific Labor Demand," Journal of Human Resources, University of Wisconsin Press, vol. 51(1), pages 1-29.
    30. David Bloom & David Canning & Günther Fink & Jocelyn Finlay, 2009. "Fertility, female labor force participation, and the demographic dividend," Journal of Economic Growth, Springer, vol. 14(2), pages 79-101, June.
    31. Francesca Modena & Fabio Sabatini, 2012. "I would if I could: precarious employment and childbearing intentions in Italy," Review of Economics of the Household, Springer, vol. 10(1), pages 77-97, March.
    32. Luca Pieroni & Melcior Rosselló Roig & Luca Salmasi & Gilberto Turati, 2023. "Legal status and voluntary abortions by immigrants," DISCE - Working Papers del Dipartimento di Economia e Finanza def126, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    33. Dan Anderberg & Helmut Rainer & Jonathan Wadsworth & Tanya Wilson, 2016. "Unemployment and Domestic Violence: Theory and Evidence," Economic Journal, Royal Economic Society, vol. 126(597), pages 1947-1979, November.
    34. Imai, Kosuke & Kim, In Song, 2021. "On the Use of Two-Way Fixed Effects Regression Models for Causal Inference with Panel Data," Political Analysis, Cambridge University Press, vol. 29(3), pages 405-415, July.
    35. Elizabeth Oltmans Ananat & Daniel M. Hungerman, 2012. "The Power of the Pill for the Next Generation: Oral Contraception's Effects on Fertility, Abortion, and Maternal and Child Characteristics," The Review of Economics and Statistics, MIT Press, vol. 94(1), pages 37-51, February.
    36. Jason M. Lindo & Caitlin Knowles Myers & Andrea Schlosser & Scott Cunningham, 2020. "How Far Is Too Far? New Evidence on Abortion Clinic Closures, Access, and Abortions," Journal of Human Resources, University of Wisconsin Press, vol. 55(4), pages 1137-1160.
    37. Paul Goldsmith-Pinkham & Isaac Sorkin & Henry Swift, 2020. "Bartik Instruments: What, When, Why, and How," American Economic Review, American Economic Association, vol. 110(8), pages 2586-2624, August.
    38. Kasey Buckles & Daniel Hungerman & Steven Lugauer, 2021. "Is Fertility a Leading Economic Indicator?," The Economic Journal, Royal Economic Society, vol. 131(634), pages 541-565.
    39. Blank, Rebecca M. & George, Christine C. & London, Rebecca A., 1996. "State abortion rates the impact of policies, providers, politics, demographics, and economic environment," Journal of Health Economics, Elsevier, vol. 15(5), pages 513-553, October.
    40. repec:pri:cheawb:adriana_booms is not listed on IDEAS
    41. Joshua Goldstein & Thomas Cassidy, 2014. "A Cohort Model of Fertility Postponement," Demography, Springer;Population Association of America (PAA), vol. 51(5), pages 1797-1819, October.
    42. Jessamyn Schaller, 2013. "For richer, if not for poorer? Marriage and divorce over the business cycle," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(3), pages 1007-1033, July.
    43. Anna Matysiak & Tomáš Sobotka & Daniele Vignoli, 2021. "The Great Recession and Fertility in Europe: A Sub-national Analysis," European Journal of Population, Springer;European Association for Population Studies, vol. 37(1), pages 29-64, March.
    44. Rodrigo Adão & Michal Kolesár & Eduardo Morales, 2019. "Shift-Share Designs: Theory and Inference," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(4), pages 1949-2010.
    45. Natalie Malak & Md Mahbubur Rahman & Terry A. Yip, 2019. "Baby bonus, anyone? Examining heterogeneous responses to a pro-natalist policy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(4), pages 1205-1246, October.
    46. Marshall Medoff, 2007. "Price, Restrictions and Abortion Demand," Journal of Family and Economic Issues, Springer, vol. 28(4), pages 583-599, December.
    47. David E. Kalist, 2004. "Abortion and Female Labor Force Participation: Evidence Prior to Roe v. Wade," Journal of Labor Research, Transaction Publishers, vol. 25(3), pages 503-514, July.
    48. Bound, John & Holzer, Harry J, 2000. "Demand Shifts, Population Adjustments, and Labor Market Outcomes during the 1980s," Journal of Labor Economics, University of Chicago Press, vol. 18(1), pages 20-54, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jones, Kelly M. & Pineda-Torres, Mayra, 2024. "TRAP’d Teens: Impacts of abortion provider regulations on fertility & education," Journal of Public Economics, Elsevier, vol. 234(C).
    2. Clarke, Damian, 2023. "The Economics of Abortion Policy," IZA Discussion Papers 16395, Institute of Labor Economics (IZA).
    3. Langella, Monica & Manning, Alan, 2022. "Residential mobility and unemployment in the UK," Labour Economics, Elsevier, vol. 75(C).
    4. Maria De Paola & Roberto Nisticò & Vincenzo Scoppa, 2020. "Fertility Decisions And Employment Protection: The Unintended Consequences Of The Italian Jobs Act," Working Papers 202003, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    5. Maria De Paola & Roberto Nisticò & Vincenzo Scoppa, 2021. "Academic Careers and Fertility Decisions," CSEF Working Papers 595, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    6. Bhalotra, Sonia & Clarke, Damian & Walther, Selma, 2022. "Women's Careers and Family Formation," GLO Discussion Paper Series 1120, Global Labor Organization (GLO).
    7. Wolfgang Auer, 2018. "Empirical Essays on the Socioeconomic Consequences of Economic Uncertainty," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 79.
    8. Gonzalez, Fidel & Quast, Troy, 2022. "The relationship between abortion rates and economic fluctuations," Economics & Human Biology, Elsevier, vol. 46(C).
    9. Biavaschi, Costanza & Facchini, Giovanni, 2020. "Immigrant Franchise and Immigration Policy: Evidence from the Progressive Era," IZA Discussion Papers 13195, Institute of Labor Economics (IZA).
    10. Héctor Bellido & Miriam Marcén, 2019. "Fertility and the business cycle: the European case," Review of Economics of the Household, Springer, vol. 17(4), pages 1289-1319, December.
    11. Singer, Gregor, 2024. "Complementary inputs and industrial development: can lower electricity prices improve energy efficiency?," LSE Research Online Documents on Economics 122365, London School of Economics and Political Science, LSE Library.
    12. McNeil, Andrew & Luca, Davide & Lee, Neil, 2023. "The long shadow of local decline: Birthplace economic adversity and long-term individual outcomes in the UK," Journal of Urban Economics, Elsevier, vol. 136(C).
    13. Erling Barth & Henning Finseraas & Anders Kjelsrud & Kalle Moene, 2023. "Hit by the Silk Road: how wage coordination in Europe mitigates the China shock," Scandinavian Journal of Economics, Wiley Blackwell, vol. 125(1), pages 32-72, January.
    14. Sanchis-Guarner, Rosa, 2023. "Decomposing the impact of immigration on house prices," Regional Science and Urban Economics, Elsevier, vol. 100(C).
    15. César, Andrés & Falcone, Guillermo & Gasparini, Leonardo, 2021. "Costs and benefits of trade shocks: Evidence from Chilean local labor markets," Labour Economics, Elsevier, vol. 73(C).
    16. Ana María Tribín-Uribe, Achyuta Adhvaryu, Cesar Anzola-Bravo & Oscar Ávila-Montealegre, Leonardo Bonilla-Mejía, Juan Carlos Castro-Fernández & Luz A. Flórez, Ánderson Grajales-Olarte, Alexander Guarín, 2020. "Migración desde Venezuela en Colombia: caracterización del fenómeno y análisis de los efectos macroeconómicos," Revista ESPE - Ensayos Sobre Política Económica, Banco de la República, issue 97, pages 1-74, October.
    17. Miriam Fritzsche, 2024. "De-industrialization, local joblessness and the male-female employment gap," Berlin School of Economics Discussion Papers 0040, Berlin School of Economics.
    18. Carlo Medici, 2024. "Closing Ranks: Organized Labor and Immigration," CESifo Working Paper Series 11437, CESifo.
    19. Bohnet, Lara & Peralta, Susana & Pereira dos Santos, João, 2022. "Cousins from Overseas: The Labour Market Impact of a Major Forced Return Migration Shock," IZA Discussion Papers 15595, Institute of Labor Economics (IZA).
    20. Gallea, Quentin, 2023. "Weapons and war: The effect of arms transfers on internal conflict," Journal of Development Economics, Elsevier, vol. 160(C).

    More about this item

    Keywords

    Fertility choice; Abortion ratio; Local economic conditions; Unemployment rate; Shift-share;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:labeco:v:87:y:2024:i:c:s0927537123001677. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/labeco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.