Time is Money – The Influence of Parenthood Timing on Wages

19 Pages Posted: 25 Aug 2012

See all articles by Michael Kind

Michael Kind

Ruhr Graduate School in Economics

Jan Kleibrink

Ruhr University of Bochum

Multiple version iconThere are 2 versions of this paper

Date Written: June 1, 2012

Abstract

This paper studies the effect of parenthood timing on future wages. Using data from the German Socio-Economic Panel (SOEP), we employ an instrumental variable approach to identify the causal effect of delaying parenthood on wages of mothers and fathers. Consistent with previous studies, we provide evidence for a positive delaying effect on wages. We further study the underlying mechanisms of the wage premium, paying particular attention to the relationship between career stage and fertility timing. We find that delaying parenthood by one additional year during the career implies a wage premium of 7%.

Keywords: Fertility, Wage Differentials, Career Path

JEL Classification: J13, J24, J31

Suggested Citation

Kind, Michael and Kleibrink, Jan, Time is Money – The Influence of Parenthood Timing on Wages (June 1, 2012). SOEPpaper No. 467, Available at SSRN: https://ssrn.com/abstract=2135446 or http://dx.doi.org/10.2139/ssrn.2135446

Michael Kind (Contact Author)

Ruhr Graduate School in Economics ( email )

Hohenzollernstr. 1-3
Essen, NRW 45128
Germany

Jan Kleibrink

Ruhr University of Bochum ( email )

Bochum, 44780
Germany