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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The Dynamics of Employment Around Child Birth. January 2003 J.D. Vlasblom J.J. Schippers Utrecht School of Economics Utrecht University. Patterns of Labour Supply, First Child. Effects of Institutions. Institutions provide Incentives (e.g. subsidies) Restrictions (availability) - PowerPoint PPT Presentation

Transcript of The Dynamics of Employment Around Child Birth

Page 1: The Dynamics of Employment Around Child Birth

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

Page 2: The Dynamics of Employment Around Child Birth

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

Page 3: The Dynamics of Employment Around Child Birth

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

Page 4: The Dynamics of Employment Around Child Birth

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

Page 5: The Dynamics of Employment Around Child Birth

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

Page 6: The Dynamics of Employment Around Child Birth

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

Page 7: The Dynamics of Employment Around Child Birth

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

Page 8: The Dynamics of Employment Around Child Birth

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)