Table 5

Effect of layoffs on fertility by business cycle, controlling for major reforms of the parental leave system

Model FAnticipationModel G: LPM With Reform Effects (1986)TreatedModel H: LPM With Reform Effects (1992)Treated
Year After LayoffIn DownturnIn UpturnIn DownturnIn UpturnIn DownturnIn Upturn
−1 −0.006 0.000 –– –– –– –– 
(0.003) (0.003)     
–– –– −0.003 0.005 −0.006 0.000 
–– –– (0.015) (0.018) (0.012) (0.015) 
–– –– −0.025 0.006 −0.028 0.002 
–– –– (0.019) (0.022) (0.016) (0.019) 
–– –– −0.047* 0.000 −0.036 0.011 
–– –– (0.021) (0.025) (0.019) (0.022) 
–– –– −0.041 0.017 −0.028 0.024 
–– –– (0.023) (0.028) (0.021) (0.024) 
–– –– −0.043 0.003 −0.033 0.011 
–– –– (0.024) (0.029) (0.022) (0.025) 
Model FAnticipationModel G: LPM With Reform Effects (1986)TreatedModel H: LPM With Reform Effects (1992)Treated
Year After LayoffIn DownturnIn UpturnIn DownturnIn UpturnIn DownturnIn Upturn
−1 −0.006 0.000 –– –– –– –– 
(0.003) (0.003)     
–– –– −0.003 0.005 −0.006 0.000 
–– –– (0.015) (0.018) (0.012) (0.015) 
–– –– −0.025 0.006 −0.028 0.002 
–– –– (0.019) (0.022) (0.016) (0.019) 
–– –– −0.047* 0.000 −0.036 0.011 
–– –– (0.021) (0.025) (0.019) (0.022) 
–– –– −0.041 0.017 −0.028 0.024 
–– –– (0.023) (0.028) (0.021) (0.024) 
–– –– −0.043 0.003 −0.033 0.011 
–– –– (0.024) (0.029) (0.022) (0.025) 

Notes: Dependent variable is cumulated first-birth probability. Model F: Treatment: Working at a firm with a mass layoff within the following year, and the outcome is having a child in the year before the mass layoff; the sample consists of the main analysis sample and those women who became pregnant in the year before the mass layoff. Data contain 15,237 spells of women at a firm with a mass layoff in the following year, and 108,561 spells of women at a firm without a mass layoff in the following year. Model G: Accounting for changes in the parental leave system in 1986. In this model, we allow for a shift in the treatment effect after the reform, independent of the status of the business cycle. Model H: Similar to Model G, but accounting for changes in the parental leave system in 1992. See Table 3 for number of observations.

p ≤ .10; *p ≤ .05

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