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DOCUMENTS DE TRAVAIL180 Labour market uncertainties for the young workforce in France and Germany: implications for family formation and fertility Marie-Thérèse Letablier et Anne Salles Labour market uncertainties for the young workforce in France and Germany: implications for family formation and fertility Marie-Thérèse Letablier & Anne Salles Institut national d’études démographiques, Paris 1 GUSTO www.gusto-project.eu Work Package 3 : Individual pathways to flexibility and Sustainability in Europe European 7th framework Programme Projet européen REPRO juillet 2012 2 Content I-Labour market uncertainties among Young people in France and West Germany ..............................8 1. Young people are more affected by unemployment than other age groups ................................9 2. Non-standard employment among the younger generations .................................................... 10 a) Part-time employment ........................................................................................................... 11 b) Fixed-term labour contracts .................................................................................................. 12 3. Transitions from education to work ........................................................................................... 13 II- Overall trends in Family formation and fertility in France and Germany ........................................ 16 1. Germany and France, two contrasted fertility patterns in Europe ............................................. 16 2. Postponement of family formation in both countries ................................................................ 17 3.... But with variations by level of education ................................................................................. 18 4. Childlessness: More common in Germany than in France .......................................................... 19 5. Family structures ......................................................................................................................... 20 a) The postponement of family formation ................................................................................. 21 b) Family size: The gap between « ideal » and actual number of children................................. 21 III - Patterns of family formation and fertility among young people with flexible jobs, unemployment and other aspects of job insecurity ....................................................................................................... 23 1. Assessing the impact of economic recessions on fertility ......................................................... 23 a) The rise in fertility has slowed down during the last economic recession ............................ 25 2. The unemployment and fertility relationship: gender and class variations ............................... 25 3. The impact of precarious employment on family formation ..................................................... 27 a) Different perceptions of the child costs in France and West Germany .................................. 28 b) From the first to the second child .......................................................................................... 30 4. The impact of the insecurity feeling on reproductive decisions ................................................. 31 IV- Implications for family policies and welfare system regulations .................................................... 33 1. What is at stake in the French and German family policies ....................................................... 33 a) Demographic challenges differ in the two countries ............................................................ 33 b) Is there a climate more propitious to child rearing in France? .............................................. 35 3 c) A relatively limited class effect regarding fertility in France ................................................... 35 d) A strong consensus on early education of children in France ............................................... 36 2. The impact of reconciliation policy ............................................................................................. 37 a) Parental leave arrangements in the two countries ................................................................ 37 b) Reconciling work and care depends mostly on mothers in Germany ................................... 38 3. Family policy support is perceived as being too limited in Germany .......................................... 39 a) The trade off: children vs a high standard of living ................................................................ 40 b) A strong incidence of the male breadwinner family model: Men’s economic security more valuable than women’s .............................................................................................................. 41 c) Women’s work and care dilemma ......................................................................................... 41 4. Implications of the welfare system regulations .......................................................................... 42 a) Labour market regulations ..................................................................................................... 42 5. Employers' attitudes and practices towards young precarious workers .................................... 43 a) Young precarious workers are likely to be excluded from companies ‘support to work-life balance ........................................................................................................................................ 43 b) Employers’ attitudes towards young women’s workers ....................................................... 44 c) The work culture .................................................................................................................... 45 V-Implications of relevant social norms and values in society ............................................................. 47 1. Social norms regarding children and their subjective value: the place of the child in the couple 47 2. Social norms regarding parenthood ........................................................................................... 49 a) Becoming an adult: what is more important? ....................................................................... 49 b) A strong « fertility pressure » in France ................................................................................. 50 c) Is there a development of a « childfree » culture in Germany? ............................................. 52 d) Ideal number of children and timing of births ....................................................................... 52 e) The ideal age for becoming parent ....................................................................................... 54 3. Contrasted attitudes towards marriage in the two countries .................................................... 55 a) Marriage: « Passage obligé » to family formation in Germany vs legitimation in France ..... 55 4. Social norms related to gender roles ......................................................................................... 56 4 a) Attitudes on parenthood and gender roles ............................................................................ 58 5. Norms and values related to the child well-being and education .............................................. 58 a) Attitudes towards mothers’ employment ............................................................................. 59 VI-Conclusion/synthesis: Implications of youth labour market uncertainties on fertility decisions – France and Germany compared. .......................................................................................................... 62 VII- References ...................................................................................................................................... 65 VIII-Annexe 1 ........................................................................................................................................ 71 Germany ............................................................................................................................................... 71 France ................................................................................................................................................... 71 ............................................................................................................................................................... 73 IX-Annexe 2: Data and methods ............................................................................................................ 74 1. Two comparable set of in-depth interviews in France and Germany .......................................... 74 X-Annexe 3 ............................................................................................................................................ 78 5 Introduction European labour markets are characterized by increasing flexibilization of work both at work places and in the individual working lives. Besides high unemployment the rise of precarious forms of employment challenges the sustainability of the social security systems, especially the insurance based systems. Mainly based on contributions, financing of these systems depends on relatively stable employment biographies, while entitlements are dependent on employment status of the individuals. Moreover, high protection levels for labour markets insiders make it difficult