Causal Effects on Employment after First Birth – A Dynamic Treatment Approach

49 Pages Posted: 17 Dec 2013

See all articles by Bernd Fitzenberger

Bernd Fitzenberger

Humboldt University of Berlin - School of Business and Economics

Katrin Sommerfeld

Centre for European Economic Research (ZEW), Department Labour Markets, Human Resources and Social Policy; IZA Institute of Labor Economics

Susanne Steffes

ZEW – Leibniz Centre for European Economic Research

Multiple version iconThere are 3 versions of this paper

Date Written: December 15, 2013

Abstract

The effects of childbirth on future labor market outcomes are a key issue for policy discussion. This paper implements a dynamic treatment approach to estimate the effect of having the first child now versus later on future employment for the case of Germany, a country with a long maternity leave coverage. Effect heterogeneity is assessed by estimating ex post outcome regressions. Based on SOEP data, we provide estimates at a monthly frequency. The results show that there are very strong negative employment effects after childbirth. Although the employment loss is reduced over the first five years following childbirth, it does not level off to zero. The employment loss is lower for mothers with a university degree. It is especially high for medium-skilled mothers with long prebirth employment experience. We find a significant reduction in the employment loss for more recent childbirths.

Keywords: Female labor supply, Maternity leave, Dynamic treatment effect, Inverse Probability Weighting

JEL Classification: C14, J13, J22

Suggested Citation

Fitzenberger, Bernd and Sommerfeld, Katrin and Steffes, Susanne, Causal Effects on Employment after First Birth – A Dynamic Treatment Approach (December 15, 2013). ZEW - Centre for European Economic Research Discussion Paper No. 13-107, Available at SSRN: https://ssrn.com/abstract=2368230 or http://dx.doi.org/10.2139/ssrn.2368230

Bernd Fitzenberger (Contact Author)

Humboldt University of Berlin - School of Business and Economics ( email )

Spandauer Str. 1
Berlin, D-10099
Germany

Katrin Sommerfeld

Centre for European Economic Research (ZEW), Department Labour Markets, Human Resources and Social Policy ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim
Germany

HOME PAGE: http://www.zew.de/en/mitarbeiter/mitarbeiter.php3?action=mita&kurz=kso

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Susanne Steffes

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

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