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The Labor Market Returns to Delaying Pregnancy

Author

Listed:
  • Yana Gallen
  • Juanna Schrøter Joensen
  • Eva Rye Johansen
  • Gregory F. Veramendi
  • Juanna Schrøter Joensen

Abstract

We study the labor market impact of unplanned pregnancy among women using long-acting reversible contraceptives to delay pregnancy. While most women successfully delay, some have unplanned pregnancies, providing quasi-random variation in pregnancy timing. Analyzing linked health and labor market data from Sweden, we find that unplanned pregnancies halt women's career progression, resulting in income losses of 19% five years later. We find similar effects of unplanned births among women using short-acting reversible contraceptives. Using pregnancy as an instrument for birth in a dynamic treatment effect framework, effects of unplanned children are more detrimental for younger women and those enrolled in education.

Suggested Citation

  • Yana Gallen & Juanna Schrøter Joensen & Eva Rye Johansen & Gregory F. Veramendi & Juanna Schrøter Joensen, 2026. "The Labor Market Returns to Delaying Pregnancy," CESifo Working Paper Series 12586, CESifo.
    • Handle: RePEc:ces:ceswps:_12586
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    Keywords

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    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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