How Can Gender Discrimination Explain Fertility

This paper focuses on the interaction between gender discrimination and household decisions. It develops a model with endogenous fertility, endogenous labor supply and endogenous size of government spending. Family policies which concern childcare services are assumed to reduce the time that parents spend on their children. The model shows that gender discrimination may explain differences in household decisions between countries. The solution shows a U-shaped relationship between fertility and gender discrimination if the quality of childcare services is sufficiently high. In the decreasing part of this U-shaped curve, a decrease in the discrimination level implies a related increase in fertility, women’s participation in the labor force and in family-friendly policies.