Family policies and fertility

Abstract

Purpose The purpose of this paper is to analyze the link between two different family policy dimensions – one supporting the combination of work and parenthood and one supporting stay-at-home mothers – and fertility rates between 1995 and 2011 in 33 industrialized countries. Design/methodology/approach Total fertility rates were regressed on the two policy dimensions, earner–carer support and traditional–family support, using pooled time-series analysis with country fixed effects and stepwise control for female labor force participation, unemployment rates and GDP. Findings The analyses show that earner–carer support is linked to higher fertility, while traditional–family support is not. Also, higher female labor force participation is linked to higher fertility before GDP is included. Conversely, higher unemployment is correlated with lower fertility levels. Sensitivity analyses with and without day care enrollment on a smaller set of countries show no influence of day care on the results for family policy. Originality/value The results give weight to the argument that family policies supporting the combination of work and parenthood could increase fertility in low-fertility countries, probably mediated in part by female labor force participation. Earnings-related earner–carer support incentivizes women to enter the labor force before parenthood and to return to work after time off with their newborn child, thus supporting a combination of work and parenthood.