Abstract
We use nationally representative data from two waves of the Indian Human Development Survey to provide causal evidence on the role of inter-temporal changes in fertility behaviour in influencing female labor market outcomes. Our multivariate regression estimates show that an increase in the number of children reduces labor force participation and earnings. We further investigated the impact of fertility changes on transitions from the labor market. The results show that women who had more than three children in both rounds of the survey had a 3.5 percentage points higher probability of exiting from the labor market. Disaggregated analyses by caste, economic status and region show regional heterogeneity, and the probability of dropping-out of the labor market due to fertility changes is greater for non-poor women and those from socially disadvantaged castes.
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