Subsidized Small Jobs and Maternal Labor Market Outcomes in the Long Run

Matthias Collischon (), Kamila Cygan-Rehm and Regina Riphahn
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Matthias Collischon: Institute for Employment Research (IAB), Nuremberg

No 17473, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper investigates whether incentives generated by public policies contribute to motherhood penalties. Specifically, we study the consequences of subsidized small jobs, the German Minijobs, which are frequently taken up by first-time mothers upon labor market return. Using a combination of propensity score matching and an event study applied to administrative data, we compare the long-run child penalties of mothers who started out in a Minijob employment versus unsubsidized employment or non-employment after birth. We find persistent differences between the Minijobbers and otherwise employed mothers up to 10 years after the first birth, which suggests adverse unintended consequences of the small jobs subsidy program for maternal earnings and pensions.

Keywords: labor market policy; maternal employment; Minijob; small job subsidies; motherhood penalty; propensity score matching (search for similar items in EconPapers)
JEL-codes: J13 J18 J22 (search for similar items in EconPapers)
Pages: 63 pages
Date: 2024-11
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Forthcoming - published online in: Socio-Economic Review , 28 February 2025

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Working Paper: Subsidized Small Jobs and Maternal Labor Market Outcomes in the Long Run (2024)
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