Modeling the Italian female labour market participation with infertility shocks

Concetta Rondinelli, ROberta Zizza
Bank of Italy, Italy

The negative association between fertility and female labour market participation is complicated by the endogeneity of fertility. We address this problem by using an exogenous variation in family size caused by infertily shocks, mainly related to the fact that nature prevents some women from achieving their desired fertility levels. We find that children do not causally affect the Italian female involvement in labour market. Cohort effects are however at play so that the presence of children significantly pushes the youngest women into the labour market.

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