Working for Change : the Effect of Female Labor Force Participation on Fertility

Though the negative correlation between fertility and development has been long acknowledged, it is challenging to estimate the causal effect of female labor force participation (FLFP) on fertility. We use a novel instrument for estimating this effect: washing machines prices -- a relevant instrument, as these appliances have been found to increase FLFP by "liberating" women’s time. We exploit the fall in prices resulting from trade reforms in Mexico to study FLFP’s effects on fertility. We find large effects on fertility and mothers’ age: increases in FLFP can explain at least 42% of the reduction in fertility experienced during this time