Globalization , Gender , and the Family ∗

The recent halt of women’s gains in labor force participation ended a decades-long process during which women would postpone marriage and having children until later and later in life. Not any longer. The age at which a Danish woman has her first child has virtually not changed since the early 2000s, for example. This paper examines the role of globalization in the family-market work decision. Using employer-employee matched data from Denmark we find that rising import competition from China which reduces labor market opportunities has a statistically and economically significant impact on the family-market work balance. Exposure to import competition reduces divorce rates, increases marriage rates, as well as leads to a greater number of children. Notwithstanding the fact that marriage and childbirth are decisions made by couples, we find these pro-family, pro-child effects to be gender biased in the sense that they mostly reflect changes in women’s labor market and family work. Observable differences between jobs held by men and women do not fully account for this; our results are consistent with gender identity playing a role.