Motherhood and career penalty

How does motherhood affect women’s careers? - Causal estimates using medically induced ovulation treatments

Abstract

This project uses fertility treatments to identify the causal effect on labor earnings of giving birth to the first child. Results show that fertility greatly reduces employment in the short run and stagnates wage growth for one to four years when compared to childless women. Fewer wage supplements and an increase in part-time work explain some of the career penalties measured in the earnings register. For mothers, cumulative earnings and hours worked decrease when a child is born, but catch up to childless women 10 to 15 years after childbirth.

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