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Changing Fertility and Heterogeneous Motherhood Effects: Revisiting the Effects of a Parental Benefits Reform

Author

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  • Fitzenberger, Bernd

    (Institute for Employment Research (IAB), Nuremberg)

  • Seidlitz, Arnim

    (Institute for Employment Research (IAB), Nuremberg)

Abstract

Using a semiparametric event study approach with a control group, we estimate the effect of motherhood on labor market outcomes in Germany, the child penalty. We further investigate how the 2007 parental benefits reform changed the child penalty while accounting for fertility effects. A large novel data set linking data from two administrative sources provides information on all births. Our estimation approach accounts for motherhood being a staggered treatment. The reform has small positive medium-run effects employment outcomes. It changes the selection into fertility and shows heterogeneous effects. However, the reform did little to reduce the average child penalty.

Suggested Citation

  • Fitzenberger, Bernd & Seidlitz, Arnim, 2024. "Changing Fertility and Heterogeneous Motherhood Effects: Revisiting the Effects of a Parental Benefits Reform," IZA Discussion Papers 16966, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16966
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    parental benefit reform; child penalty; semiparametric event study approach;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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