Whereas in theory individuals tend to postpone fertility decisions in times of economic uncertainty, empirical evidence on that question is scarce. Using data from the German Socio‐Economic Panel (N = 4,548), the authors estimated the effect of economic concerns on the probability of becoming pregnant in the next year. They exploited exogenous variation in economic concerns induced by the announcement of a major German unemployment benefit reform as an instrumental variable and found that strong economic concerns were significantly related to lower fertility of women between ages 26 and 44 years cohabiting with a male partner. Jointly estimating the impact of male and female concerns in a model that allows for endogeneity of perceived economic uncertainty revealed that it was strong economic concerns perceived by the women that reduced fertility. The effect was driven by male main breadwinner couples, by couples with a medium household income, and by couples who already had children.
Hohmeyer K, Wolff J. A fistful of euros: is the German one‐euro job workfare scheme effective for participants?
Welfare reforms have constituted a major policy issue in many OECD countries in recent decades. In Germany, a major reform in 2005 emphasised the activation of welfare recipients and introduced a workfare programme –‘One‐Euro Jobs’– on a large scale. In the present study, the impact of one‐euro jobs on the employment prospects of different groups of participants was estimated. The analysis was conducted on a large sample of welfare recipients using propensity score matching. The sample of one‐euro job participants and other welfare recipients was drawn from administrative records comprising all those who started their participation in the programme in early 2005. Our results showed that participation slightly improved the medium‐term employment prospects for women but not for men. Participation reduced the employment rate of participants younger than 25 years but raised it for some of the older participant groups. In conclusion, one‐euro jobs are effective for participants who have been jobless for several years but ineffective for participants who were recently employed.
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