Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/272617 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 15990
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
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.
Subjects: 
abortion
birth
pregnancy
mass layoff
firm closure
JEL: 
I12
J13
J65
Document Type: 
Working Paper

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