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Causal effects on employment after first birth - A dynamic treatment approach -

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Author Info

  • Sommerfeld K.
  • Steffes S.
  • Fitzenberger B.

    (GSBE)

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 motherswith a university degree. It is especially high for medium-skilled mothers with long prebirthemployment experience. We find a significant reduction in the employment loss for more recent childbirths.

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File URL: http://pub.maastrichtuniversity.nl/3b69262e-11b5-4adf-877b-2c9362947800
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Bibliographic Info

Paper provided by Maastricht University, Graduate School of Business and Economics (GSBE) in its series Research Memorandum with number 031.

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Date of creation: 2013
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Handle: RePEc:unm:umagsb:2013031

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Postal: P.O. Box 616, 6200 MD Maastricht
Phone: +31 (0)43 38 83 830
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Web page: http://www.maastrichtuniversity.nl/
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Keywords: Semiparametric and Nonparametric Methods: General; Fertility; Family Planning; Child Care; Children; Youth; Time Allocation and Labor Supply;

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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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