Soviet fertility,labor-force participation,and marital stability

A simultaneous-equations model of Soviet fertility and labor-force participation is estimated from a cross section of 72 oblast's of the Russian Republic (RSFSR) reported in the 1970 census. The construction of the model is based on the neoclassical theory of household behavior. Simulated changes capture effects of policy changes in the exogenous variables on Soviet fertility and the female labor supply. The exogenous variables investigated are child care facilities (CC), urbanization ratio (URB), male education (MALED), and female education (FEMED). It was found that an increase in FEMED affects labor force participation (LFP) directly and indirectly through impact on birth rate (BR). Increase in CC raise both LFP and BR; increases in FEMED causes womens withdrawal from the labor force and one would expect this to raise BR; however, FEMED raises the opportunity costs of fertility sufficiently to neutralize this effect. Increasing urbanization does not affect participation in a significant way, but it does retard fertility. This effect works through LFP's impact on BR and the indirect effect working through marital stability. A final set of simulations captured the impact of upward shocks of LFP, BR, and the ratio of divorces to marriages (DIV/MAR) on the endogenous variables. Such changes could occur through changes in abortion laws, tightening of divorce laws, or changes in labor legislation. Participation is reduced by the fertility shock, just as fertility is retarded by the LPF and marital stability shocks. Evidence of a backward-bending labor-supply curve was also found. The model is illustrated by tables and charts.