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Mothers’ income recovery after childbearing

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  • Angelov, Nikolay

    (IFAU - Institute for Evaluation of Labour Market and Education Policy)

  • Karimi, Arizo

    (IFAU - Institute for Evaluation of Labour Market and Education Policy)

Abstract

This paper examines the time profile of the effect of fertility on female labour earnings with respect to time since birth. To address endogeneity of fertility to labour income, we use the same-sex instrument (Angrist and Evans, 1998) in a novel way on a panel data set to uncover the time profile of the fertility effect. Our OLS estimates suggest that the largest impact takes place during the child’s first years of life, and then gradually diminishes over the lifecycle, with full recovery of income 15 years after birth. Our IV estimates support this finding, but suggest a faster recovery of earnings, although the estimates are now less precise. We are also able to reproduce this finding with a one-period cross-section and disaggregating the sample by years since third birth to estimate the time profile.

Suggested Citation

  • Angelov, Nikolay & Karimi, Arizo, 2012. "Mothers’ income recovery after childbearing," Working Paper Series 2012:20, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    • Handle: RePEc:hhs:ifauwp:2012_020
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    References listed on IDEAS

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    Cited by:

    1. Pernilla Andersson Joona, 2018. "How does motherhood affect self-employment performance?," Small Business Economics, Springer, vol. 50(1), pages 29-54, January.
    2. Hupkau, Claudia & Leturcq, Marion, 2017. "Fertility and mothers’ labor supply: new evidence usingtime-to-conception," LSE Research Online Documents on Economics 69045, London School of Economics and Political Science, LSE Library.
    3. Lundborg, Petter & Plug, Erik & Rasmussen, Astrid Würtz, 2014. "Fertility Effects on Female Labor Supply: IV Evidence from IVF Treatments," IZA Discussion Papers 8609, Institute of Labor Economics (IZA).
    4. Bruno Ferman & Ot'avio Tecchio, 2023. "Identifying Dynamic LATEs with a Static Instrument," Papers 2305.18114, arXiv.org, revised Dec 2023.
    5. Petter Lundborg & Erik Plug & Astrid Würtz Rasmussen, 2017. "Can Women Have Children and a Career? IV Evidence from IVF Treatments," American Economic Review, American Economic Association, vol. 107(6), pages 1611-1637, June.
    6. Sara Cools & Simen Markussen & Marte Strøm, 2017. "Children and Careers: How Family Size Affects Parents’ Labor Market Outcomes in the Long Run," Demography, Springer;Population Association of America (PAA), vol. 54(5), pages 1773-1793, October.
    7. Angelov, Nikolay & Johansson, Per & Lee, Myoung-jae, 2017. "The effect of fertility timing on labor market work duration," Working Paper Series 2017:13, IFAU - Institute for Evaluation of Labour Market and Education Policy.

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    More about this item

    Keywords

    Fertility; female labour supply; same-sex siblings; instrumental variables;
    All these keywords.

    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

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