IDEAS home Printed from https://ideas.repec.org/a/zbw/espost/270939.html
   My bibliography  Save this article

The impact of economic uncertainty, precarious employment, and risk attitudes on the transition to parenthood

Author

Listed:
  • Schmitt, Christian

Abstract

This study investigates how precarious employment throughout the life course affects the fertility behavior of men and women in Germany, and how risk attitudes moderate exposure to objectively given uncertainty. Analyzing data from the German Socio-Economic Panel (SOEP) study from 1990 to 2015, I find that men and women have become quite similar in their fertility behavior: Stable employment accelerates family formation, whereas discontinuous and precarious employment delays it. With regard to risk attitudes, risk-averse women show the highest likelihood of family formation. They appear to choose a family- and parenthood-centered path in their life course that provides them with stability and social approval when unstable career prospects and uncertain employment are unable to provide these resources.

Suggested Citation

  • Schmitt, Christian, 2021. "The impact of economic uncertainty, precarious employment, and risk attitudes on the transition to parenthood," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 47, pages 1-1.
  • Handle: RePEc:zbw:espost:270939
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/270939/1/Schmitt_2021_Impact_Economic_Uncertainty_AV.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. Gunnar Andersson, 2000. "The Impact of Labour-Force Participation on Childbearing Behaviour: Pro-Cyclical Fertility in Sweden during the 1980s and the 1990s," European Journal of Population, Springer;European Association for Population Studies, vol. 16(4), pages 293-333, December.
    4. Schmitt, Christian, 2012. "A Cross-National Perspective on Unemployment and First Births," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 28(3), pages 303-335.
    5. Lex Borghans & Angela Lee Duckworth & James J. Heckman & Bas ter Weel, 2008. "The Economics and Psychology of Personality Traits," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
    6. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde & Jürgen Schupp & Gert G. Wagner, 2011. "Individual Risk Attitudes: Measurement, Determinants, And Behavioral Consequences," Journal of the European Economic Association, European Economic Association, vol. 9(3), pages 522-550, June.
    7. Michaela Kreyenfeld, 2004. "Fertility Decisions in the FRG and GDR: An Analysis with Data from the German Fertility and Family Survey," Demographic Research Special Collections, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 3(11), pages 275-318.
    8. 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.
    9. Arnaud Reynaud & Stéphane Couture, 2012. "Stability of risk preference measures: results from a field experiment on French farmers," Theory and Decision, Springer, vol. 73(2), pages 203-221, August.
    10. Tamm, Marcus, 2013. "The Impact of a Large Parental Leave Benefit Reform on the Timing of Birth around the Day of Implementation," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 75(4), pages 585-601.
    11. Michaela Kreyenfeld & Gunnar Andersson & Ariane Pailhé, 2012. "Economic Uncertainty and Family Dynamics in Europe," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 27(28), pages 835-852.
    12. Lucie Schmidt, 2008. "Risk preferences and the timing of marriage and childbearing," Demography, Springer;Population Association of America (PAA), vol. 45(2), pages 439-460, May.
    13. Cobb-Clark, Deborah A. & Schurer, Stefanie, 2012. "The stability of big-five personality traits," Economics Letters, Elsevier, vol. 115(1), pages 11-15.
    14. Berkay Özcan & Karl Ulrich Mayer & Joerg Luedicke, 2010. "The impact of unemployment on the transition to parenthood," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 23(29), pages 807-846.
    15. Spiess, C.Katharina & Wrohlich, Katharina, 2008. "The Parental Leave Benefit Reform in Germany: Costs and Labour Market Outcomes of Moving towards the Nordic Model," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 27, pages 575-591.
    16. Aart C. Liefbroer & Martine Corijn, 1999. "Who, What, Where, and When? Specifying the Impact of Educational Attainment and Labour Force Participation on Family Formation," European Journal of Population, Springer;European Association for Population Studies, vol. 15(1), pages 45-75, March.
    17. Jason M. Lindo, 2010. "Are Children Really Inferior Goods? Evidence from Displacement-Driven Income Shocks," Journal of Human Resources, University of Wisconsin Press, vol. 45(2).
    18. Gigi Santow & Bracher, 2001. "Deferment of the First Birth and Fluctuating Fertility in Sweden," European Journal of Population, Springer;European Association for Population Studies, vol. 17(4), pages 343-363, December.
    19. George Hondroyiannis, 2010. "Fertility Determinants and Economic Uncertainty: An Assessment Using European Panel Data," Journal of Family and Economic Issues, Springer, vol. 31(1), pages 33-50, March.
    20. repec:cai:poeine:pope_604_0389 is not listed on IDEAS
    21. Christian Schmitt, 2012. "A Cross-National Perspective on Unemployment and First Births [Chômage et première naissance : une perspective transnationale]," European Journal of Population, Springer;European Association for Population Studies, vol. 28(3), pages 303-335, August.
    22. Alberto Cazzola & Lucia Pasquini & Aurora Angeli, 2016. "The relationship between unemployment and fertility in Italy," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 34(1), pages 1-38.
    23. Fairlie, Robert W. & Holleran, William, 2012. "Entrepreneurship training, risk aversion and other personality traits: Evidence from a random experiment," Journal of Economic Psychology, Elsevier, vol. 33(2), pages 366-378.
    24. Francis Green, 2008. "Temporary Work and Insecurity in Britain: A Problem Solved?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 88(1), pages 147-160, August.
    25. Pedro Mira & Namkee Ahn, 2002. "A note on the changing relationship between fertility and female employment rates in developed countries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(4), pages 667-682.
    26. Marcus Tamm, 2013. "The Impact of a Large Parental Leave Benefit Reform on the Timing of Birth around the Day of Implementation-super-," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 75(4), pages 585-601, August.
    27. Johannes Huinink & Martin Kohli, 2014. "A life-course approach to fertility," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 30(45), pages 1293-1326.
    28. Daniele Vignoli & Sven Drefahl & Gustavo De Santis, 2012. "Whose job instability affects the likelihood of becoming a parent in Italy? A tale of two partners," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 26(2), pages 41-62.
    29. repec:cai:poeine:pope_202_0301 is not listed on IDEAS
    30. Britta Hoem, 2000. "Entry into motherhood in Sweden," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 2(4).
    31. Kamila Cygan-Rehm, 2016. "Parental leave benefit and differential fertility responses: evidence from a German reform," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(1), pages 73-103, January.
    32. Pau Baizán & Arnstein Aassve & Francesco C. Billari, 2003. "Cohabitation, Marriage, and First Birth: The Interrelationship of Family Formation Events in Spain," European Journal of Population, Springer;European Association for Population Studies, vol. 19(2), pages 147-169, June.
    33. Karsten Hank, 2001. "Changes in Swedish Women’s Individual Activity Status and the Subsequent Risk of Giving Birth in the 1980s and 1990s," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 4(4), pages 125-132.
    34. Gottschall, Karin & Schröder, Tim, 2013. "„Familienlohn“ – Zur Entwicklung einer wirkmächtigen Normierung geschlechtsspezifischer Arbeitsteilung," WSI-Mitteilungen, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 66(3), pages 161-170.
    35. Michaela Kreyenfeld & Gunnar Andersson & Ariane Pailhé, 2012. "Economic Uncertainty and Family Dynamics in Europe: Introduction," Post-Print hal-02081826, HAL.
    36. Angelika Tölke & Martin Diewald, 2003. "Insecurities in employment and occupational careers and their impact on the transition to fatherhood in Western Germany," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 9(3), pages 41-68.
    37. Øystein Kravdal, 2002. "The impact of individual and aggregate unemployment on fertility in Norway," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 6(10), pages 263-294.
    38. Christy Spivey, 2010. "Desperation Or Desire? The Role Of Risk Aversion In Marriage," Economic Inquiry, Western Economic Association International, vol. 48(2), pages 499-516, April.
    39. Karel Neels & Zita Theunynck & Jonas Wood, 2013. "Economic recession and first births in Europe: recession-induced postponement and recuperation of fertility in 14 European countries between 1970 and 2005," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 58(1), pages 43-55, February.
    40. Eckel, Catherine C. & Grossman, Philip J., 2008. "Men, Women and Risk Aversion: Experimental Evidence," Handbook of Experimental Economics Results, in: Charles R. Plott & Vernon L. Smith (ed.), Handbook of Experimental Economics Results, edition 1, volume 1, chapter 113, pages 1061-1073, Elsevier.
    41. Hande Inanc, 2015. "Unemployment and the timing of parenthood," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 32(7), pages 219-250.
    42. Alicia Adsera, 2011. "Where Are the Babies? Labor Market Conditions and Fertility in Europe [Où sont les bébés ? Conditions du marché du travail et fécondité en Europe]," European Journal of Population, Springer;European Association for Population Studies, vol. 27(1), pages 1-32, February.
    43. Tomáš Sobotka & Vegard Skirbekk & Dimiter Philipov, 2011. "Economic Recession and Fertility in the Developed World," Population and Development Review, The Population Council, Inc., vol. 37(2), pages 267-306, June.
    44. Marloes Lange & Maarten Wolbers & Maurice Gesthuizen & Wout Ultee, 2014. "The Impact of Macro- and Micro-Economic Uncertainty on Family Formation in The Netherlands," European Journal of Population, Springer;European Association for Population Studies, vol. 30(2), pages 161-185, May.
    45. Nigel Nicholson & Emma Soane & Mark Fenton-O'Creevy & Paul Willman, 2005. "Personality and domain-specific risk taking," Journal of Risk Research, Taylor & Francis Journals, vol. 8(2), pages 157-176, March.
    46. Stefani Scherer, 2009. "The Social Consequences of Insecure Jobs," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 93(3), pages 527-547, September.
    47. Daniel Ciganda, 2015. "Unstable work histories and fertility in France," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 32(28), pages 843-876.
    48. Jule Specht & Boris Egloff & Stefan C. Schmukle, 2011. "Stability and Change of Personality across the Life Course: The Impact of Age and Major Life Events on Mean-Level and Rank-Order Stability of the Big Five," SOEPpapers on Multidisciplinary Panel Data Research 377, DIW Berlin, The German Socio-Economic Panel (SOEP).
    49. Ariane Pailhé & Anne Solaz, 2012. "The influence of employment uncertainty on childbearing in France: A tempo or quantum effect?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 26(1), pages 1-40.
    50. Michaela R. Kreyenfeld, 2004. "Fertility decisions in the FRG and GDR," MPIDR Working Papers WP-2004-008, Max Planck Institute for Demographic Research, Rostock, Germany.
    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. Chiara Ludovica Comolli, 2021. "Couples' paid work, state-level unemployment, and first births in the United States," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 45(38), pages 1149-1184.
    2. Marika Jalovaara & Anneli Miettinen, 2013. "Does his paycheck also matter?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 28(31), pages 881-916.
    3. Barbara Hofmann & Michaela Kreyenfeld & Arne Uhlendorff, 2017. "Job Displacement and First Birth Over the Business Cycle," Demography, Springer;Population Association of America (PAA), vol. 54(3), pages 933-959, June.
    4. Giammarco Alderotti & Daniele Vignoli & Michela Baccini & Anna Matysiak, 2019. "Employment Uncertainty and Fertility: A Network Meta-Analysis of European Research Findings," Econometrics Working Papers Archive 2019_06, Universita' degli Studi di Firenze, Dipartimento di Statistica, Informatica, Applicazioni "G. Parenti".
    5. Nkechi S. Owoo & Monica P. Lambon-Quayefio, 2022. "Does Job Security Affect Fertility and Fertility Intentions in Ghana? Examining the Evidence," Journal of Family and Economic Issues, Springer, vol. 43(1), pages 86-99, March.
    6. Susanne Fahlén & Livia Sz. Oláh, 2018. "Economic uncertainty and first-birth intentions in Europe," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 39(28), pages 795-834.
    7. Daniele Vignoli & Alessandra Minello & Giacomo Bazzani & Camilla Matera & Chiara Rapallini, 2022. "Narratives of the Future Affect Fertility: Evidence from a Laboratory Experiment," European Journal of Population, Springer;European Association for Population Studies, vol. 38(1), pages 93-124, March.
    8. Brian Buh, 2021. "Measuring the Effect of Employment uncertainty on Fertility in Europe (A literature review)," VID Working Papers 2103, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.
    9. 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.
    10. Leen Marynissen & Karel Neels & Jonas Wood & Sarah Van de Velde, 2020. "Ready for parenthood? Dual earners' relative labour market positions and entry into parenthood in Belgium," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 42(33), pages 901-932.
    11. Wei-hsin Yu & Shengwei Sun, 2018. "Fertility responses to individual and contextual unemployment: Differences by socioeconomic background," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 39(35), pages 927-962.
    12. Annalisa Busetta & Daria Mendola & Daniele Vignoli, 2019. "Persistent joblessness and fertility intentions," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 40(8), pages 185-218.
    13. Rishabh Tyagi, 2024. "Employment uncertainty and reproductive decisions in Norway: a register-based study based on plant closures," MPIDR Working Papers WP-2024-026, Max Planck Institute for Demographic Research, Rostock, Germany.
    14. Marcus Klemm, 2012. "Job Security and Fertility: Evidence from German Reunification," Ruhr Economic Papers 0379, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    15. Arpino, Bruno & LUPPI, FRANCESCA & Rosina, Alessandro, 2021. "Changes in fertility plans during the COVID-19 pandemic in Italy: the role of occupation and income vulnerability," SocArXiv 4sjvm, Center for Open Science.
    16. Alberto Cazzola & Lucia Pasquini & Aurora Angeli, 2016. "The relationship between unemployment and fertility in Italy," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 34(1), pages 1-38.
    17. James M. Raymo & Akihisa Shibata, 2017. "Unemployment, Nonstandard Employment, and Fertility: Insights From Japan’s “Lost 20 Years”," Demography, Springer;Population Association of America (PAA), vol. 54(6), pages 2301-2329, December.
    18. 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.
    19. Karin Lundström & Gunnar Andersson, 2012. "Labor-market status, migrant status and first childbearing in Sweden," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 27(25), pages 719-742.
    20. repec:zbw:rwirep:0379 is not listed on IDEAS
    21. Jessica Nisén & Pekka Martikainen & Mikko Myrskylä & Karri Silventoinen, 2018. "Education, Other Socioeconomic Characteristics Across the Life Course, and Fertility Among Finnish Men," European Journal of Population, Springer;European Association for Population Studies, vol. 34(3), pages 337-366, August.

    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:zbw:espost:270939. 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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zbwkide.html .

    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.