Long-Run Effects of Incentivizing Work After Childbirth

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Date: February 18, 2021
Time: 12:30 p.m. - 2:00 p.m.
Location: Virtual event
495 Gilmour Mall
Detroit, MI 48202
Category: Seminar

Elira Kuka
Department of Economics
George Washington University

Link to paper.

Abstract:

This paper uses a panel of SSA earnings linked to the CPS to estimate the impact of increasing post-childbirth work incentives on mothers' long-run career trajectories. We implement a novel research design that exploits variation in the timing of the 1993 reform of the Earned Income Tax Credit (EITC) around a woman's fi rst birth and in eligibility for the credit. We fi nd that single mothers exposed to the expansion immediately after a fi rst birth ("early-exposed") have 3 to 4 p.p. higher employment in the fi ve years after a fi rst birth than single mothers exposed 3 to 6 years after a fi rst birth ("late-exposed"). Ten to nineteen years after a fi rst birth, early-exposed mothers have the same employment and hours as late-exposed mothers, but have accrued at least 0.5 to 0.6 more years of work experience and have 4.2 percent higher earnings conditional on working. We provide suggestive evidence that these higher earnings are primarily explained by the increase in work experience, rather than a change in marriage, fertility, or occupation. Our results suggest that there are steep returns to work incentives at childbirth that accumulate over the life-cycle.

Contact

Shooshan Danagoulian
3135771078
fr4523@wayne.edu

Cost

Free
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