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Causal Effects on Employment after First Birth: A Dynamic Treatment Approach

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  • Bernd Fitzenberger
  • Katrin Sommerfeld
  • Susanne Steffes

Abstract

The effects of childbirth on future labor market outcomes are a key issue for policy discussion. This paper implements a dynamic treatment approach to estimate the effect of having the first child now versus later on future employment for the case of Germany, a country with a long maternity leave coverage. Effect heterogeneity is assessed by estimating ex post outcome regressions. Based on SOEP data, we provide estimates at a monthly frequency. The results show that there are very strong negative employment effects after childbirth. Although the employment loss is reduced over the first five years following childbirth, it does not level off to zero. The employment loss is lower for mothers with a university degree. It is especially high for medium-skilled mothers with long prebirth employment experience. We find a significant reduction in the employment loss for more recent childbirths.

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Bibliographic Info

Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 576.

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Length: 46 p.
Date of creation: 2013
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Handle: RePEc:diw:diwsop:diw_sp576

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Keywords: Female labor supply; Maternity leave; Dynamic treatment effect; Inverse Probability Weighting;

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References

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Cited by:
  1. Peter Egger & Valeria Merlo & Martin Ruf & Georg Wamser, 2012. "Consequences of the New UK Tax Exemption System: Evidence from Micro-level Data," CESifo Working Paper Series 3942, CESifo Group Munich.
  2. Frühwirth-Schnatter, Sylvia & Pamminger, Christoph & Weber, Andrea & Winter-Ebmer, Rudolf, 2014. "When Is the Best Time to Give Birth?," IZA Discussion Papers 8396, Institute for the Study of Labor (IZA).

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