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The Labor Market Returns to Delaying Pregnancy

Author

Listed:
  • Gallen, Yana

    (Harris School, University of Chicago)

  • Joensen, Juanna

    (University of Chicago)

  • Johansen, Eva

    (the Chairmanship of the Danish Economics Councils)

  • Veramendi, Gregory

    (Royal Holloway, University of London)

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

  • Gallen, Yana & Joensen, Juanna & Johansen, Eva & Veramendi, Gregory, 2026. "The Labor Market Returns to Delaying Pregnancy," IZA Discussion Papers 18529, IZA Network @ LISER.
  • Handle: RePEc:iza:izadps:dp18529
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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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