1. ^aMerrill Lynch Private Equity Group, Merrill Lynch Financial Centre, London EC1A 1HQ, UK
2. ^bEconomics Department, Middlebury College, Warner Hall 502F, Middlebury, Vermont 05753, USA. and IZA (BONN, GERMANY). E-mail: wunnava@middlebury.edu

Abstract

Recently, many industrialized countries have posted fertility rates below the replacement rate, generating concern that populations in these countries are rapidly declining. Low fertility rates are often believed to be the result of greater opportunities for women in the workforce and in higher education. Past studies have reinforced this belief by showing that a negative correlation often exists between female labor force participation and fertility and female higher education attainment and fertility. This study uses cross-sectional time-series data for 13 European Union (EU) countries covering the years 1990–2003 to test whether this negative relationship between workforce participation and fertility still exists. The findings of this study show that neither increased female education nor increased labor force participation were significant in determining fertility. However, other social and labor market trends, such as the prevalence of part-time employment, unemployment rate, age at marriage, and contraceptive use, were found to be significant.