Working Paper
Long-Run Effects of Incentivizing Work After Childbirth
Abstract: This paper identifies the impact of increasing post-childbirth work incentives on mothers’ long-run careers. We exploit variation in work incentives across mothers based on the timing of a first birth and eligibility for the 1993 expansion of the Earned Income Tax Credit. Ten to nineteen years after a first birth, single mothers who were exposed to the expansion immediately after birth (“early”), rather than 3 6 years later (“late”), have 0.62 more years of work experience and 4.2% higher earnings conditional on working. We show that higher earnings are primarily explained by improved wages due to greater work experience.
Keywords: employment; children; incentives; Earned Income Tax Credit (EITC);
JEL Classification: J16; J22; J31; H20;
https://doi.org/10.24148/wp2023-27
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Provider: Federal Reserve Bank of San Francisco
Part of Series: Working Paper Series
Publication Date: 2023-06-23
Number: 2023-27