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The Effects of Non-standard Employment on the Transition to Parenthood Within Couples: A Comparison of Germany and Australia

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Abstract

Using longitudinal data from Germany and Australia for the 2001‒2013 period, this study investigates the link between non-standard employment, such as fixed-term contracts, temporary agency work, part-time and casual work, and first birth within couple relationships. In contrast to previous studies, competing risks event history models are estimated to simultaneously consider couples’ risks of first birth and of partnership dissolution. The results indicate, for example, that temporary employment of the female partner, and especially temporary agency work, decreases first birth risks in both countries. This suggests that women, in their dual role as primary carer and secondary earner, seek a secure employment position to return to after parental leave. In contrast, male partner’s part-time work negatively affects the first birth risk and simultaneously increases the risk of partnership dissolution only in Australia, suggesting a more important role of men as primary earners in this country. Overall, the study highlights the twofold impact of non-standard employment on fertility, consisting of a direct influence on the first birth risk among stable couples and an indirect influence through the risk of partnership dissolution.

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Notes

  1. Another source suggests that agency work has increased over the 2001‒2006 period, from around 350,000 in May 2001 to around 550,000 in May 2006 (BA 2016).

  2. These data were provided by the German Federal Statistical Office upon request. Note that breaks in the time series reduce the comparability of employment rates over time. Most notably, extrapolation was based on the 1987 Census until 2010 and on the 2011 Census since then. Consequently, there has been a jump in the maternal employment rate by 2.7 percentage points between 2010 and 2011.

  3. A parental leave payment specifically targeted at fathers, named Dad and Partner Pay, followed in 2013. It involves up to 2 weeks of pay at national minimum wage level. The analysis in this paper cannot account for this benefit, however, as it only includes births up to the year 2012.

  4. Whereas the HILDA Survey includes retrospective questions on the date at which couples started living together, in the SOEP data preparation had to rely primarily on observing couples moving in together during the panel. Around 16% of the SOEP couples had to be discarded due to the lack of information on the date of moving in together.

  5. Waves 2012 and 2013 are not used in the estimation as it requires up to two subsequent waves to establish whether a point in time was followed by a pregnancy given that many births are only reported two waves later.

  6. Whereas the option “not applicable” is mainly designed for the self-employed, around 5% of employees in the analysis sample also chose this response. Of this group, more than a third were Beamte, a type of state official that is not issued with an employment contract. Given that Beamte are generally hired for life after a few years of probation, Beamte reporting not to have a contract were re-classified as permanent workers.

  7. The “other contract” category had extremely few cases, and these were thus discarded.

  8. In the SOEP sample, a small number of observations (less than 2%) lacked information on usual working hours. In these cases, self-classification was used instead, with those identifying as part-time or marginal workers and those who consider themselves not working but worked in the last week classified as part-time workers.

  9. The largest group in this category are employees who report not to have an employment contract (and were not Beamte). The second largest group are workers classified by the SOEP as not working but who were working according to the ILO labour force concept.

  10. Around 1% of observations from the SOEP sample lacked information on health satisfaction. These values were imputed using the current state of health, which is measured on a five-point ordinal scale from “very good” to “bad”. Correlation between these variables is high (0.74).

  11. Broadly speaking, children are assigned to the household of the parent where they spend most of their time. As in both countries, most children live with their mother post-separation, the variable “resident children of the male partner” will capture a relatively small share of their children. However, the analysis cannot account for non-resident children given that not all these children are known in the SOEP. Further, resident children can be expected to have the strongest impact on partnership transitions.

  12. Note that income for the Australian self-employed is underestimated as the HILDA measure does not include business income.

  13. The interplay of part-time hours and a permanent contract was also formally tested by re-estimating Model 1 including a respective interaction term. For German women, results show that part-time hours are positively (but insignificantly so) associated with first birth risks for permanent workers, but significantly and negatively linked to first birth risks for temporary workers. Among Australian women, part-time hours are significantly and positively associated with first birth risks for permanent workers, but this association is weaker and statistically insignificant for temporary workers.

  14. The coefficient for fixed-term part-time work for Australian men is not reported due to very low cell size.

  15. It should be noted that the negative association of the broad category of temporary employment with women’s first birth risk (Model 1) remains statistically significant in both countries even if all working students are classified as “in education”.

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Acknowledgements

This paper uses unit record data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey and the German Socio-Economic Panel (SOEP). The HILDA Project was initiated and is funded by the Australian Government Department of Social Services and is managed by the Melbourne Institute of Applied Economic and Social Research. The SOEP data were made available by the German Institute for Economic Research, Berlin. I am grateful to Mark Wooden and Martin Diewald for helpful comments on previous versions of this paper.

Funding

Parts of this study were supported by a mobility grant of the Bielefeld Graduate School in History and Sociology, Bielefeld University, and under the Australian Research Council’s Discovery Projects funding scheme (Project # DP160103171).

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Laß, I. The Effects of Non-standard Employment on the Transition to Parenthood Within Couples: A Comparison of Germany and Australia. Eur J Population 36, 843–874 (2020). https://doi.org/10.1007/s10680-019-09548-7

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