The cost of a child, mother's employment behavior and economic insecurity in Europe.

The past two decades in Western European societies have been marked by a decline in fertility rates together with an increase in women's work-force participation. This has given rise to a massive transformation in traditional patterns of relationships, especially in gender roles and family size. This paper will examine the outcome of the birth of a child and link this outcome to specific family policies in Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg, Portugal, Spain, and the United Kingdom. The outcome of the birth of a child will be measured in the data by comparing the pre-child-birth income and its sources to the post-child-birth income and its sources. How does the financial impact of having a child differ in different countries? What is the impact of the compensation provided by the state in terms of transfer benefits for families? What is the impact on women's labor force activity? What are the changes in the wage income of the family members? This research uses the Consortium of Household panels for European socio-economic Research (CHER) longitudinal panel from 1990 to 2001 in the 10 European countries. Data provide for a detailed cross-national comparison before and after the birth of a child for market work, wage income, and public transfer income, including family benefits. The results indicate that there are important differences among the European countries studied.