Study: “A Dynamic Structural Model of Contraceptive Use and Employment Sector Choice for Women in Indonesia”
PI: Radhakrishnan, Uma
Affiliation: University of Virginia
Funding Partner: IIE
Project Dates:
Start: 2008
End: 2010
Data Source(s): Panel Data (Indonesia Family Life Survey 1)
Method(s): Multilevel analysis
Geographic Location: Indonesia

Description:
In the 1960s, the average Indonesian woman had between five and six children. By the mid-1990s, the average number of children had declined to close to three per woman. A large part of this reduction in fertility has been attributed to the extensive family planning program that was initiated in the late 1960s under the regime of President Suharto. Contraceptive use among married women increased from 5 percent in the late 1960s to approximately 55 percent in the mid-1990s. While there is an extensive literature on the impact of the Family Planning Program on fertility rates and contraceptive use, there has been very little investigation of the program’s impact on other aspects of a woman’s life, such as labor force participation. This research investigates the impact of the Indonesian Family Planning Program on the labor force participation decisions and contraceptive choices of women.

This research looks at how investments in family planning services affect the well-being of women by affecting their employment choices and childbearing decisions, while at the same time recognizing the interdependency of these interrelated life choices. Results indicate that informal-sector jobs offer greater compatibility between work and child care, and women with more kids and young kids receive more utility from working in the informal sector. When women have greater access to modern methods of contraception, it reduces the cost of using modern methods, which encourages greater use and reduces the likelihood of birth and the number of births. This ultimately encourages women to participate in the formal sector. This research can provide a greater understanding to policymakers who are interested in the relationship between investments in family planning programs and its impact on economy-level variables. Although the outcomes observed are at the individual level, it can be aggregated to get a measure at the macro level.

Research Outputs:

Radhakrishnan, Uma. (2010). A Dynamic Structural Model of Contraceptive Use and Employment Sector Choice for Women in Indonesia (Population and Economic Development Working Paper No. 10-01). DOI: 10.2139/ssrn.1688337