The Labor Market Returns to Delaying Pregnancy

Yana Gallen (), Juanna Joensen (), Eva Johansen () and Gregory Veramendi ()
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Yana Gallen: Harris School, University of Chicago
Juanna Joensen: University of Chicago
Eva Johansen: the Chairmanship of the Danish Economics Councils
Gregory Veramendi: Royal Holloway, University of London

No 18529, IZA Discussion Papers from IZA Network @ LISER

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.

Keywords: labor market costs of motherhood; fertility; contraceptives; unplanned pregnancy (search for similar items in EconPapers)
JEL-codes: J13 J22 J24 J31 (search for similar items in EconPapers)
Date: 2026-04
New Economics Papers: this item is included in nep-eur, nep-lma and nep-ltv
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