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Precautionary Fertility: Conceptions, Births, and Abortions around Employment Shocks

Author

Listed:
  • Anna Bárdits

    (KRTK KTI, Central European University)

  • Anna Adamecz

    (KRTK KTI, UCL Social Research Institute)

  • Márta Bisztray

    (KRTK KTI)

  • Andrea Weber

    (Central European University, CEPR, IZA)

  • Ágnes Szabó-Morvai

    (KRTK KTI, University of Debrecen)

Abstract

This paper studies the effects of employment shocks on births and induced abortions. We are the first to show that abortions play a role in fertility responses to job displacement. Furthermore, we document precautionary fertility behavior: the anticipatory response of women to expected labor market shocks. Using individual-level administrative data from Hungary, we look at firm closures and mass layoffs as conditionally exogenous employment shocks in an event study design. After establishing that both shocks have a similarly large and persistent negative effect on employment and wages, we show that women already react to the anticipation of these shocks, and their fertility responses differ substantially for firm closures and mass layoffs. We find that abortions increase by 88% in the year before firm closures, while the number of births is not affected. Mass layoffs have no significant effect on abortions in the preceding year but increase the number of births by 44%. Mass layoffs and firm closures differ in one crucial aspect: pregnant women cannot be laid off until the firm exists, but no such dismissal protection is available in the case of firm closures. Thus, when dismissal protection is available, anticipated employment shocks increase the number of live births, whereas when it is not, they increase the number of abortions. These results suggest that dismissal protection has the potential to support women to keep pregnancies at times of economic shocks.

Suggested Citation

  • Anna Bárdits & Anna Adamecz & Márta Bisztray & Andrea Weber & Ágnes Szabó-Morvai, 2023. "Precautionary Fertility: Conceptions, Births, and Abortions around Employment Shocks," CERS-IE WORKING PAPERS 2303, Institute of Economics, Centre for Economic and Regional Studies.
  • Handle: RePEc:has:discpr:2303
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    References listed on IDEAS

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    Cited by:

    1. Marco Francesconi & Daniela Sonedda, 2024. "Does Weaker Employment Protection Lower the Cost of Job Loss?," CESifo Working Paper Series 11417, CESifo.
    2. 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.
    3. Szabó, Lajos Tamás & Erdélyi, Levente, 2024. "Munkaerő-áramlás Magyarországon 2002-2021 között teljes körű adminisztratív adatok alapján [Labour force flows in Hungary 2002-2021 based on comprehensive administrative data]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(7), pages 728-754.

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    More about this item

    Keywords

    Abortion; Birth; Pregnancy; Mass layoff; Firm closure;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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