Child Penalties, Child Outcomes, and Family Culture

Eric Gould and Guy Lichtinger

No 19722, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: This paper analyzes how the “child penalty†associated with career interruptions for women after becoming a mother is influenced by preferences absorbed during childhood, and how the child penalty, in turn, is related to the quantity and quality (education) of her own children. Using linked administrative data on Israeli parents and children, the analysis shows that mothers who grew up in larger and more traditional families marry men from larger families, and together they have more children. Growing up with more siblings is also associated with a larger child penalty for a mother in earnings and employment, as well as in terms of commuting less and moving to “mother friendly†firms at the expense of higher wage firms. The results also indicate that the child penalty produces two opposing effects on child human capital – a negative impact due to the loss of parental income, and a positive influence of increased maternal time away from work. Overall, the evidence suggests that the family preferences and norms absorbed during childhood significantly influence a woman’s choices of spouse, fertility, and child penalty later in life – but with little overall impact on her children’s high school achievements.

Keywords: Child; penalties (search for similar items in EconPapers)
JEL-codes: J12 J13 J16 J22 J24 J31 J62 (search for similar items in EconPapers)
Date: 2024-11
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