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Child Penalties and Marriage Dissolution

Author

Listed:
  • Ayllón, Sara

    (Universitat de Girona)

  • Kirkpatrick, Linda

    (Auckland University of Technology)

  • Plum, Alexander T.

    (Auckland University of Technology)

Abstract

This paper investigates how a change in marital status can influence labour market-related child penalties, by comparing married couples and those whose marriage is dissolved after the birth of their first child. We take advantage of the rich administrative data from New Zealand and show that child penalties vary greatly by civil status: whereas the employment penalty for married mothers is 32%, for mothers who get divorced within seven years of giving birth, it is about 5% and indistinguishable from that facing fathers. The same is true of earnings, indicating that divorced mothers have a much stronger attachment to the labour market than do married mothers. Our section on mechanisms points to differences in economic need as the driver behind the discrepancy in child penalties by marital status.

Suggested Citation

  • Ayllón, Sara & Kirkpatrick, Linda & Plum, Alexander T., 2025. "Child Penalties and Marriage Dissolution," IZA Discussion Papers 17658, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp17658
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    References listed on IDEAS

    as
    1. Garnero, Andrea & Kampelmann, Stephan & Rycx, François, 2013. "Part-time Work, Wages and Productivity: Evidence from Belgian Matched Panel Data," IZA Discussion Papers 7789, Institute of Labor Economics (IZA).
    2. Henrik Kleven & Camille Landais & Johanna Posch & Andreas Steinhauer & Josef Zweimüller, 2019. "Child Penalties across Countries: Evidence and Explanations," AEA Papers and Proceedings, American Economic Association, vol. 109, pages 122-126, May.
    3. Claudia Goldin & Lawrence F. Katz, 2012. "The Most Egalitarian of All Professions: Pharmacy and the Evolution of a Family-Friendly Occupation," NBER Working Papers 18410, National Bureau of Economic Research, Inc.
    4. François Rycx & Andrea Garnero & Stephan Kampelmann, 2014. "part-time work, Wages and Productivity :Evidence from Matched panel data," ULB Institutional Repository 2013/245672, ULB -- Universite Libre de Bruxelles.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    child penalty; labour market; marital dissolution; event-study estimates; New Zealand;
    All these keywords.

    JEL classification:

    • 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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