Andreas Kotsadam

Title: Female Jobs and Fertility: Long-term Experimental Evidence from Ethiopian Factories

Abstract: We conducted an experiment with 27 factories in Ethiopia to test the widespread hypothesis that formal employment among women reduces fertility. Tracking respondents over eight years, we find that women who were randomly offered a job had more children than the control group. The effect on fertility emerged once the effect on wage employment faded away, around three years after baseline. There are clear effects on household income and savings, but not on bargaining power or marriage. These patterns are consistent with a Beckerian model in which the income effect dominates the substitution effect and households are credit constrained.