Causal Effects on Employment after First Birth: A Dynamic Treatment Approach

Bernd Fitzenberger, Katrin Sommerfeld and Susanne Steffes

No 7438, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The effects of childbirth on future labor market outcomes are a key issue for policy discussion. This paper implements a dynamic treatment approach to estimate the effect of having the first child now versus later on future employment for the case of Germany, a country with a long maternity leave coverage. Effect heterogeneity is assessed by estimating ex post outcome regressions. Based on SOEP data, we provide estimates at a monthly frequency. The results show that there are very strong negative employment effects after childbirth. Although the employment loss is reduced over the first five years following childbirth, it does not level off to zero. The employment loss is lower for mothers with a university degree. It is especially high for medium-skilled mothers with long pre-birth employment experience. We find a significant reduction in the employment loss for more recent childbirths.

Keywords: dynamic treatment effect; maternity leave; female labor supply; inverse probability weighting (search for similar items in EconPapers)
JEL-codes: C14 J13 J22 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2013-06
New Economics Papers: this item is included in nep-dem
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (69)

Published - published in: Labour Economics, 2013, 25, 49-62

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Related works:
Journal Article: Causal effects on employment after first birth — A dynamic treatment approach (2013)
Working Paper: Causal Effects on Employment after First Birth: A Dynamic Treatment Approach (2013)
Working Paper: Causal effects on employment after first birth - A dynamic treatment approach - (2013)
Working Paper: Causal effects on employment after first birth - A dynamic treatment approach - (2013)
Working Paper: Causal effects on employment after first birth: A dynamic treatment approach (2013)
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