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                <term xml:lang="en">Childcare</term>
                <term xml:lang="en"> Education</term>
                <term xml:lang="en"> Fertility</term>
                <term xml:lang="en"> Female Employment.</term>
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              <p>This paper shows that dierences in fertility across European countries mainlyemerge due to fewer women having two children in low fertility countries. It furthersuggests that childcare services are an important determinant for the transition to asecond child to occur. The theoretical framework we propose suggests that: (i) incountries where childcare coverage is low, there is a U-shaped relationship between acouple's probability to have a second child and female's wage, while ((ii)) in countrieswith easy access to childcare, this probability is positively related with the woman'spotential wage. Data from the European Survey of Income and Living Conditions (EU-SILC) conrm these implications when estimating a woman's probability of having asecond child as a function of education. This implies that middle income women arethe most aected ones by the lack of childcare coverage.</p>
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