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When Is The Best Time To Give Birth?

Author

Listed:
  • Frühwirth-Schnatter, Sylvia

    (Vienna University of Economics and Business)

  • Pamminger, Christoph

    (Johannes Kepler University Linz)

  • Weber, Andrea

    (Universität Mannheim and WIFO)

  • Winter-Ebmer, Rudolf

    (Johannes Kepler University Linz and IHS)

Abstract

Using Bayesian Markov chain clustering analysis we investigate career paths of Austrian women after their first birth. This data-driven method allows characterizing long-term career paths of mothers over up to 19 years by transitions between parental leave, non-employment and different forms of employment. We, thus, classify women into five cluster-groups with very different long-run career costs of childbearing. We model group membership with a multinomial specification within the finite mixture model. This approach gives insights into the determinants of the long-run family gap. Giving birth late in life may lead very diverse outcomes: on the one hand, it increases the odds to drop out of labor force, and on the other hand, it increases the odds to reach a high-wage career track.

Suggested Citation

  • Frühwirth-Schnatter, Sylvia & Pamminger, Christoph & Weber, Andrea & Winter-Ebmer, Rudolf, 2014. "When Is The Best Time To Give Birth?," Economics Series 308, Institute for Advanced Studies.
  • Handle: RePEc:ihs:ihsesp:308
    as

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    File URL: http://www.ihs.ac.at/publications/eco/es-308.pdf
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    References listed on IDEAS

    as
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    4. Elizabeth Ty Wilde & Lily Batchelder & David T. Ellwood, 2010. "The Mommy Track Divides: The Impact of Childbearing on Wages of Women of Differing Skill Levels," NBER Working Papers 16582, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    Fertility; timing of birth; family gap; Transition Data; Markov Chain Monte Carlo; Multinomial Logit; Panel Data;

    JEL classification:

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

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