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When Is The Best Time To Give Birth?

Author

Listed:
  • Sylvia Frühwirth-Schnatter
  • Christoph Pamminger
  • Andrea Weber
  • Rudolf Winter-Ebmer

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

  • Sylvia Frühwirth-Schnatter & Christoph Pamminger & Andrea Weber & Rudolf Winter-Ebmer, 2014. "When Is The Best Time To Give Birth?," NRN working papers 2014-09, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
    • Handle: RePEc:jku:nrnwps:2014_09
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    References listed on IDEAS

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    Cited by:

    1. Fortin, Nicole M. & Bell, Brian & Böhm, Michael, 2017. "Top earnings inequality and the gender pay gap: Canada, Sweden, and the United Kingdom," Labour Economics, Elsevier, vol. 47(C), pages 107-123.

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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;
    All these keywords.

    JEL classification:

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

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