Immigrant supply of marketable child care and native fertility in Italy

Abstract

Abstract The availability of child-care services has often been advocated as one of the instruments to counter the fertility decline observed in many high-income countries. In the recent past, large inflows of low-skilled migrants have substantially increased the supply of child-care services. In this paper, we examine if immigration has actually affected fertility exploiting the natural experiment occurred in Italy in 2007, when a large inflow of migrants—many of them specialized in the supply of child care—arrived unexpectedly. With a difference-in-differences method, we show that immigrant female workers have increased native births by a number that ranges roughly from 2% to 4%. We validate our result by the implementation of an instrumental variable approach and several robustness tests, all concluding that the increase in the supply of child-care services by immigrant women has positively affected native fertility.