We study the role of fertility adjustments for the labor market responsiveness of
men and women. First, we use longitudinal Danish register data and tax reforms
from 2009 to provide new empirical evidence on asymmetric fertility adjustments
to tax changes of men and women. Second, we quantify the importance of these
fertility adjustments for understanding the labor supply responsiveness of couples
through a life-cycle model of family labor supply and fertility. Allowing fertility
adjustments increases the labor supply responsiveness of women by 28%. These
adjustments affect human capital accumulation and has permanent implications for
the gender wage gap within couples