My Parents Are Not Home: Parental Employment and Teenage Fertility

Abstract:

Having a child entails long-term consequences. From an economic perspective, it significantly affects parents’ time and financial resources for over two decades. As a result, financial constraints, unemployment, and broader economic fluctuations are likely to influence both the timing and likelihood of childbearing. However, existing research suggests that early pregnancies—especially among teenagers—are often unplanned and may respond differently to economic conditions. This study examines how labor market dynamics shape fertility decisions, comparing the effects of employment shocks on adult and teenage fertility. We highlight how changing economic prospects influence not just the number of children born, but also the circumstances under which births occur. Additionally, we construct gender-specific measures of job losses and analyze their effects on fertility, income, and labor supply across different age and gender groups. Our findings reinforce prior evidence that negative labor market shocks have opposing impacts on teenage versus adult fertility.

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