The effect of the Zika virus outbreak on fertility and female labour market outcomes

Since the outbreak of the Zika virus in Brazil, the number of microcephaly cases significantly increased among newborn children. Detrimental effects on the health outcomes of newborn children provided incentives to delay pregnancy, thereby potentially affecting women's labour market outcomes. Using the variation of suspected microcephaly cases across states, we found that for every suspected microcephaly case per 10,000 residents, the probability of having a newborn child decreased by approximately 8%. This trend was more pronounced among younger and more educated women. Despite fertility decline, our findings provide little evidence that female labour market outcomes were altered by the outbreak of Zika virus.