The Effects of Women′s Labour Force Participation and Work-Family Reconciliation Support on Fertility

Abstract

This study analyzes the effects of women`s labour force participation and work-family reconciliation support on life-cycle fertility in Korea. The analysis is based on the longitudinal data from Korean Labour and Income Panel Study (KLIPS), which include the available information on life-cycle fertility and employment history. Employing a dynamic model of fertility, we estimated the life-cycle fertility of all the 15-49 years old women considered in this study by using a duration model. The major results of this study were as follows: First, women`s labour force participation had a negative effect on the first birth, second birth, and all births (transition to births starting at different parities). Women`s employment tended to lengthen the interval between births. Second, the availability of maternal leave had a positive effect on the first birth and all births for working women. Providing maternal leave to working women decreased the opportunity cost of childbearing and in turn, reduced the interbirth interval of women. However, the availability of parental leave had no significant effect on the births of working women. Third, the financial support for childcare had a positive effect on the first birth and all births. The economic support for childcare led to the reduction in the interbirth interval of women by increasing the probability of births. The use of a childcare center for the first child, which substitutes for the time that women needed to take care of their children, classified as time-intensive consumption goods, did not have any effect on the second birth. Fourth, the part-time employment of women had a positive effect on the second birth. A flexible working time schedule tended to decrease the interval between the first and the second births.