Labour market integration, occupational uncertainties, and fertility choices in Germany and the UK

Abstract

Contrasting the conservative German welfare state with the liberal market economy of the United Kingdom, this paper examines how each welfare regime affects the first-birth decisions of men and women under the conditions of either high labour market integration (full-time work in a permanent position) or occupational uncertainty (part-time work or work with a fixed-term contract). The results, which are based on BHPS and GSOEP data, suggest for Germany that occupational uncertainty hampers transitions to parenthood, but are inconclusive for the UK. Among highly educated women in both Germany and the UK, however, a high degree of labour market integration is found to delay family formation.