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THE EFFECT OF HUSBAND'S JOB DISPLACEMENT ON THE TIMING AND SPACING OF BIRTHS IN THE UNITED STATES

Authors

  • ALIAKSANDR AMIALCHUK

    1. Amialchuk: Assistant Professor, Department of Economics, University of Toledo, 2801 W Bancroft St., Toledo, OH 43606. Phone 1-419-530-5147, Fax 1-419-530-7844, E-mail aamialc@utnet.utoledo.edu
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    • I would like to thank Aimee Chin, Chinhui Juhn, Cal Winegarden, University of Houston seminar participants, the Ninth IZA European Summer School in Labor Economics session participants, and two anonymous referees for helpful conversations and comments. I thank Jim Walker who graciously sent me computer programs to perform estimations. Work on this project was supported by the 2007–2008 University of Toledo Summer Research Awards and Fellowship Program. All errors or omissions are my own.


Abstract

I use husband's job displacement as an exogenous shock to identify the effect of income on the timing and spacing of births. Gradual adjustment of fertility to income shock is considered in life-cycle model with uncertainty. Flexible hazard model, estimated jointly for the first three births, allows household's fertility to be affected not only in the period of displacement but also before and after. General displacements and layoffs have negative log-run effect on the timing and spacing of only the first and the third births. The effect persists with nonparametric controls for woman- and transition-specific heterogeneity, and after robustness checks. (JEL J13, J63, C41)

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