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

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  • Fitzenberger, Bernd

    ()
    (University of Freiburg)

  • Sommerfeld, Katrin

    ()
    (University of Freiburg)

  • Steffes, Susanne

    ()
    (ZEW Mannheim)

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 pre-birth employment experience. We find a significant reduction in the employment loss for more recent childbirths.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7438.

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Length: 50 pages
Date of creation: Jun 2013
Date of revision:
Handle: RePEc:iza:izadps:dp7438

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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.

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