Demographic aspects on the labour market situation in Sweden during the interwar period

Abstract

Abstract Swedish demographic research into the causes of fertility changes has been dominated by an institutional perspective. In contrast to this it is argued in the article that the fertility variations during the interwar period must be viewed primarily in the light of what happened in the labour market for young people and women. The fall in fertility between 1920 and 1935 occurred at the same time as economic conditions (the labour market situation and relative wages) for young people worsened, caused by ever-larger youth cohorts. After 1935 economic conditions improved for young people because the young cohorts were diminishing in size. In 1920-35 the labour market situation developed favourably for women, which resulted in lower fertility. After 1935 the labour market situation for women changed in a negative direction, which resulted in higher fertility. These results are in accord with both Easterlin's relative income hypothesis and the “new home economics” model.