Childbirth and Firm Performance: Evidence from Norwegian Entrepreneurs

John Bonney, Luigi Pistaferri and Alessandra Voena

No 33448, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Using multiple administrative data sources from Norway, we examine how firm performance changes after entrepreneurs become parents. Female-owned businesses experience a substantial decline in profits, steadily decreasing to 30% below baseline ten years post-childbirth. In contrast, male-owned businesses show no decline, often growing in revenues and costs after childbirth. The profit decline for female-owned firms is most pronounced among highly capable entrepreneurs, women who are majority owners, and those with working spouses. Entrepreneurial effort is key to performance, and our findings suggest that time demands from childbirth and childcare are a significant determinant of the decline in firm profits.

JEL-codes: J13 J16 L25 L26 (search for similar items in EconPapers)
Date: 2025-02
New Economics Papers: this item is included in nep-eff, nep-hrm, nep-lab and nep-sbm
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