Short-term fluctuations in fertility and economic activity in Israel

This paper investigates the relation between fluctuations in fertility and in economic activity in Israel over the period 1950–1970. The paper opens with some comments on the theoretical basis for expecting procyclical behavior of fertility. This is followed by analysis of annual data of total fertility, unemployment, GNP and an index of industrial production. Total fertility tends to respond to the cyclical indicators among Jews from Europe and America, those born in Israel and those from Asian and African countries, but the response is larger among the former. Cyclical response can be discerned also in the fertility of the non-Jewish population. The performance of the alternative cyclical indicators is compared. Some examination of data on marriage suggests that the cyclical response of birth is not just a reflection of the cyclical response of marriage. In the annual data there is a tendency for.Jewish fertility to be more related to the contemporaneous cyclical indicator than the lagged indicator, while the reverse is true for the non-Jewish population. Examination of quarterly and monthly data for a shorter period corroborates this finding. Many factors are involved in determining the lag between an observed cyclical indicator and observed birth; it is being conjectured that the prevalence of abortions in the Jewish population is one contributing factor to the difference in the lag between.Jews and Arabs.     

Employment transitions in the Netherlands, 1980–2004: Are low educated men subject to structural or cyclical crowding out?

This article addresses whether low educated men are displaced from their jobs by higher educated workers in the Netherlands in the period 1980–2004. In particular, we test whether structural or cyclical crowding out is predominant in the Dutch labor market. In order to do so, we try to explain the observed trends in education-specific transition rates to entry into first employment from education, exit from employment into unemployment or inactivity, and re-entry into employment from unemployment or inactivity for men by both business cycle effects (that is, changes in aggregate unemployment rates) and structural effects (that is, changes in labor supply–demand ratios for high educated). Discrete-time event history models are estimated using the OSA Labor Supply Panel 1985–2004. Retrospective information enables to study trends from 1980 onwards, so that structural effects can be distinguished from cyclical effects. The results show that structural crowding out exists at both the worker in- and outflow. First of all, it was observed that a growth in the oversupply of high educated increases the employment exit risk of low educated workers more so than that of higher educated ones. In addition, it was shown that an increase in the oversupply of high educated especially reduces the re-employment chances of low educated unemployed men. There is no evidence found for cyclical crowding out among low educated workers in the Dutch labor market.     

Fertility changes in Latin America in periods of economic uncertainty

We explored the relation between fertility and the business cycle in Latin America. First, we used aggregate data on fertility rates and economic performance for 18 countries. We then studied these same associations in the transitions to first, second, and third births with DHS individual data for ten countries. The results show that in general, childbearing declined during economic downturns. The decline was mainly associated with increasing unemployment rather than slowdowns in the growth of gross domestic product, although there was a positive relationship between first-birth rates and growth. While periods of unemployment may be a good time to have children because opportunity costs are lower, in fact childbearing was reduced or postponed, especially among the most recent cohorts and among urban and more educated women. The finding is consistent with the contention that, during this particular period in Latin America, income effects were dominant.     

Forecasting births in Greater London: An application of the easterlin hypothesis

Summary A model for forecasting fertility is proposed in which an attempt is made to represent the cyclical fluctuations in fertility typical of developed societies. R. A. Easterlin has put forward the hypothesis that relative affluence, i.e. tension between material aspirations and resources, is an important determinant of fertility behaviour. Relative cohort size in turn affects relative affluence, because the size of a cohort influences its competitive position in the labour market. However, predictions based on relative cohort size alone neglect other sources of periodic fluctuations in fertility, such as those arising from generational cycles. A periodic component which expresses fertility variations as a direct function of time is, therefore, included in this model. A time series of age-specific fertility rates and population estimates for England and Wales and for Greater London is used to assess the relationship between fertility, relative cohort size, and the periodic time function. There is evidence of significant cyclic effects and some support for the Easterlin hypothesis in that the fertility of younger age groups is inversely related to the relative size of older cohorts. Projections are made of the future trend in total fertility assuming a continuation of the observed relationship. Use of different assumed periodicities permits the generation of variant projections of fertility.     

Business cycles and fertility dynamics in the United States

Using recent developments in time-series econometrics, this paper investigates the behavior of fertility over the business cycle. The sex-specific unemployment rates, the divorce rate and the fertility rate are shown to be governed by stochastic trends. Furthermore, fertility is determined to be cointegrated with the divorce rate.In the bivariate vector-autoregressions between fertility and unemployment, an increase in the female or male unemployment rates generate a decrease in fertility, which is consistent with the findings of previous time-series research concerning the procyclical behavior of fertility. However, when the models include the divorce rate and the proportion of young marriages as additional regressors, shocks to the unemployment rates bring about an increase in fertility, implying the countercyclicality of fertility. This outcome holds for the time period 1948–1982, as well as 1972–1982.I would like to thank Clive Granger, Michael Grossman, Theodore Joyce, Salih Neftei, Jeffrey Zax and two anonymous referees for helpful comments. Any errors reflect my shortcomings only. This paper is the revised version of the National Bureau of Economic Research Working Paper No. 3177. It has not undergone the review accorded official NBER publications; in particular, it has not been submitted for approval by the Board of Directors.     

On the dependence of age structure on asequence of mortality and fertility schedules: An exposition of a cyclical model of population change

In this paper a method to investigate the dependence of age structure and growth rate on a given sequence of fertility and mortality schedules under the conditions of unchanging mortality and absence of migration is discussed. The method consists in projecting an arbitrary population classified by age to the ends of successive periods assuming that a given age pattern of mortality will remain without change and that a given sequence of fertility schedules will repeatedly operate on the population in a cyclical fashion. It is shown that after a sufficiently large number of repetitions of the cycle, the shifts in age structure between the ends of successive periods and the changes in the growth of the different age groups from one period to the next show a cyclical pattern. Formulas are derived expressing the above changes in terms of a sequence of k growth multipliers, k being the number of schedules in the fertility sequence, and the survival rates in the mortality schedule. A numerical illustration of the theory is given using fertility data from Finland.     

Business Cycles,Medicaid Generosity,and Birth Outcomes

Birth outcomes influence many aspects of later life health and wellbeing, making healthcare access during pregnancy a policy priority. Low-income mothers often depend on Medicaid, for which eligibility is determined by their income relative to state eligibility thresholds. The prevalence of adverse birth outcomes is known to exhibit cyclical variation, due in part to changes in the composition of women giving birth in response to changing economic conditions. However, cyclical variation in adverse birth outcomes also varies with respect to Medicaid eligibility thresholds. Our analysis uses birth-records data for 2000 through 2013, aggregated into 173,936 county-by-quarter observations and linked to county-level unemployment rates and state-level parental Medicaid thresholds. Using fixed-effects negative binomial models, we examine the role of Medicaid generosity in influencing birth outcomes across business cycles. We test for interactions between Medicaid and unemployment, hypothesizing that the negative effects of recessions are worse where Medicaid thresholds are more restrictive. We find that higher Medicaid generosity dampens the negative effects of recessions on birth outcomes. The extent to which Medicaid interacts with unemployment also varies according to the age and race composition of mothers; in particular, Black mothers are both most affected by unemployment and most responsive to Medicaid generosity. Given current concerns about racial gaps in both infant and maternal mortality, our findings suggest that Medicaid may be an important feature of a strategy to close gaps in the prevalence of adverse birth outcomes across racial groups, especially during bust years.     

Application of Granger-Sims causality tests to monthly fertility data, 1958–1984

When applied to monthly age specific data, Granger-Sims causality tests provide a useful technique for identifying the effective lag between business cycles and fertility in the United States. Male and female monthly age specific unemployment rates are used as a proxy for the business cycle, and test results are presented for first and higher order birth rates, as well as total age-specific monthly fertility rates. The period is subdivided (January 1958 – May 1973 and June 1973 – December 1984) in order to identify possible trends. Four results hold in all cases studied, with respect to the relationship between unemployment and fertility. (1) Noncausality is rejected in the direction from unemployment to fertility, and no feedback effect is indicated; thus the relationship is one of simple causality. (2) In the critical decision period from 9–16 months prior to realized fertility rates, the sign of the effect of unemployment on fertility is negative: this holds for both male and female unemployment rates. (3) There appears to have been a shortening of the effective lag between unemployment and fertility, of perhaps 2 – 3 months, between periods 1 (1959 – 1973) and 2 (1973 – 1984). (5) The strength of the (negative) relationship between unemployment and fertility appears to have increased from period 1 to period 2.Presented at the annual meeting of the Population Association of America, Chicago, April 30, 1987. This paper has benefitted from discussions with and comments by Andrew Weiss, Clive Granger, Lee Ohanian and Pietro Balestra, and from comments by two anonymous referees. For help in obtaining previously unpublished data, the authors are grateful to Stephanie Ventura (NCHS), G. P. Goings (BLS) and Paula Schneider (Bureau of the Census). Financial support was provided by the University of Southern California     

Cyclical variations in unemployment duration

In this paper I study how individual unemployment durations vary over the business cycle, using unemployment spells of a sample of Danish workers. A compositional, an outflow, and a residual calendar-time component are identified, and they all contribute to explaining the variations in unemployment duration. Based on the analysis it is concluded that long-term unemployment is a phenomenon that is associated with periods of high unemployment, but nothing should prevent the long-term unemployed finding jobs again as aggregate unemployment eventually starts falling. In particular, there is no evidence of negative duration dependence, not even at long durations, and not when aggregate unemployment is high. Received: 7 December 1998/Accepted: 24 August 1999     

An analysis of variations in U. S. fertility and female labor force participation trends

This study is based on time series data from 1947–1977 on fertility and female labor force participation, and examines (a) the effects of male relative income and female earnings on the level and timing of fertility and female labor force participation, and (b) the relative importance of variations in relative income and female wage rates in explaining the fluctuations in both fertility and female labor supply. The results suggest that relative income exerts a significant positive effect on fertility and a negative effect on female work effort. However, female wage rates appear to be the dominant factor in explaining variations in fertility and female labor force participation over the past two decades, with increases in female earnings leading to both depressed fertility and increased labor force participation of women.     

浅析人力资本、职业选择与失业风险

引入失业事件发生风险概念 ,揭示人力资本、职业选择与失业的关系 ,进一步探讨人力资本及人力资本积累在个人生命周期中实现就业的作用。阐明个人就业过程中应注意的问题 ;指出职业选择在个人生命周期中对就业状况的重要影响     

Ageing and the labor market

Generation size and structure may have substantial effects on the labor market. This perspective is crucial for the German economy which is one of the most rapidly ageing societies. The paper studies the effects of relative cohort size and relative cohort age on unemployment. The time-series analysis employs cointegration techniques to discriminate between short-run and long-run developments. The econometric investigations suggest that in the long-run, there is no sufficient evidence that young cohorts experience higher unemployment rates if their cohort size is relatively high. In the short-run, there is in general a positive impact of relative cohort size and relative cohort age on unemployment.Revised version of Discussion Paper No. 90-25, University of Munich. A first draft of this paper was written, when I was visiting CentER, Tilburg University. I wish to thank Sijbren Cnossen, John De New, Horst Krämer, Walter Krämer, Winfried Schmahl, Christoph M. Schmidt, Bernard M. S. van Praag, Michael R. Veall, Jürgen Wolters, the participants of the ISPE-conference and three referees of this journal for helpful comments, John De New, Lucie Merkle and Martin Milhleisen for able research assistance, and the German Science Foundation (DFG) for financial support. The paper has also benefited from a research visit to Université Catholique de Louvain, Louvain-la-Neuve.     

Cohort,age, and period effects upon the employment of white females: Evidence for 1957–1968

The net effects of birth cohort, age, and period upon the employment of white women, 1957–1968, are estimated by a regression analysis of data from the Social Security Administration’s continuous work history file. By conceptualizing period-specific effects as those associated with the business cycle, we avoid multicollinearity and succeed in performing an analysis faithful to the cohort concerns usual in fertility analysis and to the macroeconomic concerns usual in employment studies. The age pattern of employment and the pattern of intercohort employment change are examined in some detail. The long-run (cohort) trend of increasing white female employment is compared with the estimated (short-run) effects attributable to the business cycle, and it is found that, while both are significant, the former exerted a stronger effect in the 1957–1968 period.     

Economic recession and fertility in the developed world

This article reviews research on the effects of economic recessions on fertility in the developed world. We study how economic downturns, as measured by various indicators, especially by declining GDP levels, falling consumer confidence, and rising unemployment, were found to affect fertility. We also discuss particular mechanisms through which the recession may have influenced fertility behavior, including the effects of economic uncertainty, falling income, changes in the housing market, and rising enrollment in higher education, and also factors that influence fertility indirectly such as declining marriage rates. Most studies find that fertility tends to be pro-cyclical and often rises and declines with the ups and downs of the business cycle. Usually, these aggregate effects are relatively small (typically, a few percentage points) and of short durations; in addition they often influence especially the timing of childbearing and in most cases do not leave an imprint on cohort fertility levels. Therefore, major long-term fertility shifts often continue seemingly uninterrupted during the recession—including the fertility declines before and during the Great Depression of the 1930s and before and during the oil shock crises of the 1970s. Changes in the opportunity costs of childbearing and fertility behavior during economic downturn vary by sex, age, social status, and number of children; childless young adults are usually most affected. Furthermore, various policies and institutions may modify or even reverse the relationship between recessions and fertility. The first evidence pertaining to the recent recession falls in line with these findings. In most countries, the recession has brought a decline in the number of births and fertility rates, often marking a sharp halt to the previous decade of rising fertility rates.     

The differential effects of husbands' and wives' statuses on marital fertility

As an extension of prior subjectively-oriented studies that predicted couples' fertility decisions or outcomes by the expected costs and benefits of childbearing to husbands and wives, this article examines the differentiated effects of husbands' and wives' objective statuses on marital fertility, using the cumulative 1972–1990 GSS data. An interesting finding is that wives' education has a significant, negative effect on fertility while the effect of husbands' education is positive and statistically insignificant. This suggests that the generalization of the negative effect of education on fertility may be misleading if one fails to make a distinction between marital partners. Meanwhile, this study finds no significant differences in the effects of husbands' and wives' occupational and work statuses on fertility. By and large, the husbands' status variables add little information to the models explaining fertility. It is also found that the effects of husbands' and wives' statuses are contingent upon their relative education.     

Last Hired,First Fired? Black-White Unemployment and the Business Cycle

Studies have tested the claim that blacks are the last hired during periods of economic growth and the first fired in recessions by examining the movement of relative unemployment rates over the business cycle. Any conclusion drawn from this type of analysis must be viewed as tentative because cyclical movements in the underlying transitions into and out of unemployment are not examined. Using Current Population Survey data matched across adjacent months from 1989–2004, this article provides the first detailed examination of labor market transitions for primeage black and white men to test the last hired, first fired hypothesis. Considerable evidence is presented that blacks are the first fired as the business cycle weakens. However, no evidence is found that blacks are the last hired. Instead, blacks appear to be initially hired from the ranks of the unemployed early in the business cycle and later are drawn from nonparticipation. The narrowing of the racial unemployment gap near the peak of the business cycle is driven by a reduction in the rate of job loss for blacks rather than increases in hiring.     

The effect of income on fertility

Abstract Cross-sectional data and long-period time series data have generally shown an inverse relationship between income and fertility. But short-period time series data over the business cycle have shown a direct relationship. The first part of this paper resolves this apparent paradox by showing that it arises from a statistical illusion-specification bias due to omitted lagged variables. The second part of the paper then considers the likely unconditional effect of income on fertility in several sorts of situations: (a) secular income increase in less developed countries; (b) cyclical income change in industrialized countries; (c) secular income increase in industrialized countries; and (d) incentive payments for higher and lower fertility.     

The uncertain lifetime and the timing of human capital investment

I examine the effects of mortality decline on fertility and human capital investment decision of parents taking into account the uncertainty about child survival. I propose a model, where parents decide on their fertility before the uncertainty is realized, but they choose to invest only in human capital of their surviving children. The model implies a positive relationship between mortality and fertility and a negative one between mortality and educational investment. It has been argued elsewhere that as, in reality, most of the mortality decline occurred in infancy, it should not affect the human capital investment decision, which comes later in life. Thus, increased survival chances should not promote growth by raising the human capital investment. This paper argues the contrary and proposes a mechanism where mortality decline at any age before the teen years can promote growth by raising human capital investment regardless of the timing of the educational investment.      

On testing Easterlin's hypothesis using relative cohort size as a proxy for relative income

Measures of Canadian fertility (total fertility rate and fifteen-year age-specific fertility rate F_15–29) and relative cohort size (population aged 30–64 years divided by population aged 15–29 years) show a close co-movement between 1940 and 1976 but record a marked departure since then. The application of cointegration techniques to these series (1921–1988) shows that they do not form an equilibrium relationship even over the period 1940–1976. Contrary to the expected relationship between relative cohort size and relative income, income data by age groups show that there is no tight relationship between them. The absence of an equilibrium relationship between relative cohort size and fertility, therefore, does not necessarily imply that Easterlin's hypothesis is false.I would like to thank Paul Maxim for allowing me to use his data set for this analysis. My thanks are also due to Peter Smith and three anonymous referees for their constructive comments on this work.     

A specification of marital fertility by parents’ age,age atmarriage and marital duration

The positive association between wife's age at marriage and fertility experienced at the older reproductive ages, cited in recent natural fertility literature, is explored using Mormon birth cohorts from 1840 to 1879. When this relationship is specified by husband's age at marriage and marriage duration, the results indicate that older-aged husbands depress marital fertility only at higher marriage durations. The general decomposition of age-specific fertility utilizing both mother's and father's age is also considered. The results show that mother's aging is the most important factor, while father's aging has a moderately negative effect under a natural fertility regime.