The Career Costs of Children

Adda, Jérôme; Dustmann, Christian; Stevens, Katrien

doi:10.1086/690952

Cited by 422 publications

(317 citation statements)

References 59 publications

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“…As a result of these and other changes, women and men have become more similar in terms of both market and household productivity. There can be gains to specialization within 1 Adda, Dustmann, and Stevens (2015) build a structural model, which they estimate using German data. They find a "career cost" of children-the net present value of lifetime earnings of mothers relative to a no fertility scenario-of 35 percent, three-quarters of which result from labor supply reductions.…”

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confidence: 99%

Specialization Then and Now: Marriage, Children, and the Gender Earnings Gap across Cohorts

Juhn

McCue

2017

Journal of Economic Perspectives

134

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The ratio of female-to-male median annual earnings for full-time/full-year workers stood at 0.79 in 2014 (DeNavas-Walt and Proctor 2015). While this ratio is up from the 1960 level of 0.61, a substantial gap remains. Moreover, convergence has slowed since 2000. A recent survey article by Blau and Kahn (2016) finds that while women's gains in market skills measured by education and work experience were important in explaining convergence over the period 1980-2000, these human capital variables account for only a negligible portion of the gap that remains. In fact, women now surpass men on most measures of educational attainment, but this advantage has not filtered through to parity in wages (Goldin, Katz, and Kuziemko 2006; Murphy and Topel 2014).The career dynamics of the gender gap for graduates of the Chicago Business School, as studied by Bertrand, Goldin, and Katz (2010), illustrate a common pattern. While women and men start their careers with similar earnings, a substantial gap arises over time, and the arrival of children is a major concurrent factor in the rising earnings gap. At least in this highly (and homogeneously) educated population, only a small share of the gender gap is due to premarket factors such as training and coursework; instead, family formation sets the gap in motion. Wood, Corcoran, and Courant (1993) and Goldin (2014) document similar patterns among graduates of the University of Michigan and Harvard law schools. Wilde, Batchelder, and

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confidence: 99%

Specialization Then and Now: Marriage, Children, and the Gender Earnings Gap across Cohorts

Juhn

McCue

2017

Journal of Economic Perspectives

134

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“…Thus future researchers might, for example, analyze the long run eect of the reform on potential human capital investment and labor supply in a dynamic structural framework 26 (see Adda et al (2017)). Within such a long term perspective, women would face lower expected opportunity costs of childbearing because of higher earnings replacement of leave payments, so younger women in particular might respond by increasing their investment in human capital.…”

Section: Discussionmentioning

confidence: 99%

Can Financial Incentives Reduce the Baby Gap? Evidence from a Reform in Maternity Leave Benefits

Raute

2017

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. To assess whether earnings-dependent maternity leave positively impacts fertility and narrows the baby gap between high educated (high earning) and low educated (low earning) women, I exploit a major maternity leave benefit reform in Germany that considerably increases the financial incentives for higher educated and higher earning women to have a child. In particular, I use the large differential changes in maternity leave benefits across education and income groups to estimate the effects on fertility up to 5 years post reform. In addition to demonstrating an up to 22% increase in the fertility of tertiary educated versus low educated women, I find a positive, statistically significant effect of increased benefits on fertility, driven mainly by women at the middle and upper end of the education and income distributions. Overall, the results suggest that earnings-dependent maternity leave benefits, which compensate women commensurate with their opportunity cost of childbearing, could successfully reduce the fertility rate disparity related to mothers' education and earnings. Terms of use: Documents inJEL-Codes: J130, J160, J180.

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“…Adda, Dustmann, and Stevens (2011) model and estimate the complex interaction of career and fertility choices. They find that women in high-growth/high-atrophy occupations are less likely to have children, and if they do, they have them at an older age.…”

Section: Related Literaturementioning

confidence: 99%

Parenthood and productivity of highly skilled labor: Evidence from the groves of academe

Krapf

Ursprung

Zimmermann

2017

Journal of Economic Behavior & Organization

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. We examine the effect of pregnancy and parenthood on the research productivity of academic economists. Combining the survey responses of nearly 10,000 economists with their publication records as documented in their RePEc accounts, we do not find that motherhood is associated with low research productivity. Nor do we find a statistically significant unconditional effect of a first child on research productivity. Conditional differencein-differences estimates, however, suggest that the effect of parenthood on research productivity is negative for unmarried women and positive for untenured men. Moreover, becoming a mother before 30 years of age appears to have a detrimental effect on research productivity.JEL Classification: J13, I23, J24

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The Career Costs of Children

Cited by 422 publications

References 59 publications

Specialization Then and Now: Marriage, Children, and the Gender Earnings Gap across Cohorts

Specialization Then and Now: Marriage, Children, and the Gender Earnings Gap across Cohorts

Can Financial Incentives Reduce the Baby Gap? Evidence from a Reform in Maternity Leave Benefits

Parenthood and productivity of highly skilled labor: Evidence from the groves of academe

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