SHORT-TERM FLUCTUATIONS IN FERTILITY AND ECONOMIC ACTIVITY IN ISRAEL.

This paper investigates the relation between fluctuations in fertility and in economic activity in Israel over the period 1950-1970. The paper opens with some comments on the theoretical basis for expecting pro-cyclical behavior of fertility. This is followed by analysis of annual data of total fertility, unemployment, GNP and an index of industrial production. Total fertility tends to respond to the cyclical indicators among Jews from Europe and America, those born in Israel and those from Asian and African countries, but the response is larger among the former. Cyclical response can be discerned also in the fertility of the non-Jewish population. The performance of the alternative cyclical indicators is compared. Some examination of data on marriage suggests that the cyclical response of birth is not just a reflection of the cyclical response of marriage. In the annual data there is a tendency for Jewish fertility to be more related to the contemporaneous cyclical indicator than the lagged indicator, while the reverse is true for the non-Jewish population. Examination of quarterly and monthly data for a shorter period corroborates this finding. Many factors are involved in determining the lag between an observed cyclical indicator and observed birth; it is being conjectured that the prevalence of abortions in the Jewish population is one contributing factor to the difference in the lag between Jews and Arabs. [ABSTRACT FROM AUTHOR]