Long-Run Effects of Incentivizing Work After Childbirth

2023-27 | June 1, 2023

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.

Article Citation

Kuka, Elira, and Na’ama Shenhav. 2023. “Long-Run Effects of Incentivizing Work After Childbirth,” Federal Reserve Bank of San Francisco Working Paper 2023-27. Available at https://doi.org/10.24148/wp2023-27

About the Author
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Na’ama Shenhav is a senior economist in the Economic Research Department of the Federal Reserve Bank of San Francisco. Learn more about Na’ama Shenhav