Abstract (may include machine translation)
We study fertility responses to employment shocks. Using unique Hungarian administrative
data that allow linking firm-level mass layoff and closure events to individual-level records
on births and abortions, we show that the main response happens in anticipation of
the shock. Responses differ by the availability of dismissal protection. While pregnancies
increase in anticipation of all events, births only rise in case of mass layoffs when pregnant
women are protected from layoffs. If the firm closes protection is lost and we find an
increase in abortions. We interpret these results as evidence for precautionary fertility
behavior. Women threatened by job displacement bring births forward to exploit dismissal
protection, a strategy that breaks down if the firm closes permanently.
data that allow linking firm-level mass layoff and closure events to individual-level records
on births and abortions, we show that the main response happens in anticipation of
the shock. Responses differ by the availability of dismissal protection. While pregnancies
increase in anticipation of all events, births only rise in case of mass layoffs when pregnant
women are protected from layoffs. If the firm closes protection is lost and we find an
increase in abortions. We interpret these results as evidence for precautionary fertility
behavior. Women threatened by job displacement bring births forward to exploit dismissal
protection, a strategy that breaks down if the firm closes permanently.
| Original language | English |
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| Place of Publication | Bonn |
| Publisher | IZA Institute of Labor Economics |
| Number of pages | 62 |
| State | Published - 2023 |
Publication series
| Name | IZA Discussion Paper Series ; 15990. |
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