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When Is the Best Time to Give Birth?

Author

Listed:
  • Frühwirth-Schnatter, Sylvia

    (Vienna University of Economics and Business)

  • Pamminger, Christoph

    (University of Linz)

  • Weber, Andrea

    (Central European University)

  • Winter-Ebmer, Rudolf

    (Johannes Kepler University Linz)

Abstract
Using Bayesian Markov chain clustering analysis we investigate career paths of Austrian women after their first birth. This data-driven method allows characterizing long-term career paths of mothers over up to 19 years by transitions between parental leave, non-employment and different forms of employment. We, thus, classify women into five cluster-groups with very different long-run career costs of childbearing. We model group membership with a multinomial specification within the finite mixture model. This approach gives insights into the determinants of the long-run family gap. Giving birth late in life may lead very diverse outcomes: on the one hand, it increases the odds to drop out of labor force, and on the other hand, it increases the odds to reach a high-wage career track.

Suggested Citation

  • Frühwirth-Schnatter, Sylvia & Pamminger, Christoph & Weber, Andrea & Winter-Ebmer, Rudolf, 2014. "When Is the Best Time to Give Birth?," IZA Discussion Papers 8396, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8396
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    References listed on IDEAS

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    1. Sanders Korenman & David Neumark, 1992. "Marriage, Motherhood, and Wages," Journal of Human Resources, University of Wisconsin Press, vol. 27(2), pages 233-255.
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    3. Fitzenberger, Bernd & Sommerfeld, Katrin & Steffes, Susanne, 2013. "Causal effects on employment after first birth — A dynamic treatment approach," Labour Economics, Elsevier, vol. 25(C), pages 49-62.
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    Cited by:

    1. Fortin, Nicole M. & Bell, Brian & Böhm, Michael, 2017. "Top earnings inequality and the gender pay gap: Canada, Sweden, and the United Kingdom," Labour Economics, Elsevier, vol. 47(C), pages 107-123.

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    More about this item

    Keywords

    family gap; Transition Data; Markov Chain Monte Carlo; timing of birth; Multinomial Logit; fertility; Panel Data;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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