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Time Is Money: The Influence of Parenthood Timing on Wages

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  • Michael Kind
  • Jan Kleibrink

Abstract

This paper studies the effect of parenthood timing on future wages. Using data from the German Socio-Economic Panel (SOEP), we employ an instrumental variable approach to identify the causal effect of delaying parenthood on wages of mothers and fathers. Consistent with previous studies, we provide evidence for a positive delaying effect on wages. We further study the underlying mechanisms of the wage premium, paying particular attention to the relationship between career stage and fertility timing. We find that delaying parenthood by one additional year during the career implies a wage premium of 7%.

Suggested Citation

  • Michael Kind & Jan Kleibrink, 2012. "Time Is Money: The Influence of Parenthood Timing on Wages," SOEPpapers on Multidisciplinary Panel Data Research 467, DIW Berlin, The German Socio-Economic Panel (SOEP).
  • Handle: RePEc:diw:diwsop:diw_sp467
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    References listed on IDEAS

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    Cited by:

    1. Chabé-Ferret, Bastien, 2016. "Adherence to Cultural Norms and Economic Incentives: Evidence from Fertility Timing Decisions," IZA Discussion Papers 10269, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    Fertility; Wage Differentials; Career Path;

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • 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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