Flexitime, Generous Leave, and High Incomes: A Synergistic Fertility Boost

• In Event: 20816 - Fertility Patterns in Economic and Cultural Context

Abstract

This study applies the Life Course Synergy Model (LCSM) to investigate how policy interactions between labor market flexibility (flexitime) and parental leave spending shape fertility behavior. Using Poisson models across 15 European countries, we find that the effect of household income on the expected number of children becomes markedly positive in contexts characterized by both high flexitime availability and generous leave spending—a relationship rarely observed in prior research. Contrary to the conventional view that higher-income couples tend to have fewer children, our results suggest that when supportive labor market structures and welfare benefits align, families with greater financial resources become more likely to expand their households. This synergistic effect highlights the importance of looking beyond single-policy approaches to understand fertility choices, especially for economically advantaged groups who might otherwise forgo childbearing due to the opportunity costs of parenting. Our findings underscore the power of integrated policy designs in reconciling economic imperatives with family aspirations, ultimately promoting both workforce participation and demographic sustainability.

Authors

• Matthew James Parbst, Bocconi University

• Arnstein Aassve, Bocconi University

• Letizia Mencarini, Bocconi University

• Hande Tugrul, Bocconi University