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Child penalties in labour market skills

Author

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  • Jessen, Jonas
  • Kinne, Lavinia
  • Battisti, Michele

Abstract

This paper estimates child penalties in labour-market-relevant cognitive skills, such as numeracy but also literacy and problem-solving competencies. We use international PIAAC data and adapt a pseudo-panel approach to a single cross-section covering 29 countries. Numeracy scores, which are associated with the largest returns to skills and pronounced gender differences, decline by 0.11 standard deviations for fathers and an additional 0.07 for mothers. We find no evidence of a deterioration in the occupational skill match for either mothers or fathers. Our findings suggest that changes in general labour market skills such as numeracy competencies explain at most 10% of child penalties in earnings. We additionally show that cross-sectional estimates of child penalties can be sensitive to controlling for predetermined characteristics that vary across cohorts, in our case education.

Suggested Citation

  • Jessen, Jonas & Kinne, Lavinia & Battisti, Michele, 2026. "Child penalties in labour market skills," European Economic Review, Elsevier, vol. 184(C).
  • Handle: RePEc:eee:eecrev:v:184:y:2026:i:c:s0014292125002958
    DOI: 10.1016/j.euroecorev.2025.105245
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    Cited by:

    1. is not listed on IDEAS
    2. David Dorn & Florian Schoner & Moritz Seebacher & Lisa Simon & Ludger Woessmann, 2024. "Multidimensional Skills on LinkedIn Profiles: Measuring Human Capital and the Gender Skill Gap," Papers 2409.18638, arXiv.org, revised May 2025.

    More about this item

    Keywords

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    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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