Compatibility of children and work preferences: two European cases.

Nowadays female participation in the labor market and motherhood are competing and the conciliation between them can be solved in different ways. In this paper we analyze children and work preferences in two European countries with very different behaviour: Italy and France. Italy shares with Spain the lowest fertility level (the TFR is around 1.25) whereas French TFR reaches the highest level (1.89) among the European Community countries. Moreover female employment rate in Italy is about 40% whereas in France reaches 70%. In these two contexts, using data from the European Community Household Panel, we model jointly fertility and female participation in the labor market, taking into account the potential correlation across unobserved heterogeneity in children and work preferences.