I analyze the impact of labor market risks on fertility and female labor supply in a dynamic structural life-cycle model. In particular, I provide insights on whether parental leave policies, such as legal job protection periods, can mitigate these risks. To this end, I estimate a dynamic discrete choice model, using a rich German panel dataset, for the time period between 2007 and 2013. Preliminary findings suggest a strong impact of parental leave job protection on fertility.
A current version of the working paper can be downloaded from here