The Relationship between Union Formation and Labour Force Participation: A Comparative Analysis of Italy and Spain

Lucia Coppola, Università di Roma "La Sapienza"
Arnstein Aassve, University of Leicester

This paper focuses on the relationship between union formation and employment transitions in Italy and Spain. Both countries have experienced a strong decline in marriage rates during the nineties, and it has been argued that this is a consequence of difficult labour market conditions among young individuals. In this paper we investigate the relationship between these processes with the aim to establish to what extent a tight youth labour market actually influences young individuals to delay their union formation. We use data from the ECHP to model employment and union as joint processes. The results show that although many of the traditional family formation patterns exist, young women are increasingly gaining independence through their work career, and tend to delay marriage as a consequence. For men stable employment is crucial in terms of starting their own family, implying that poor labour market conditions would have negative effects on marriage rates.