Working Paper: NBER ID: w27444
Authors: Elira Kuka; Naama Shenhav
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: EITC; postchildbirth work incentives; maternal labor market outcomes; single mothers; long-run earnings
JEL Codes: H20; H24; J16; J20; J22; J24
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Early exposure to work incentives following childbirth (J22) | Increased work experience (J24) |
| Increased work experience (J24) | Higher earnings (J31) |
| Early exposure to work incentives following childbirth (J22) | Higher likelihood of high earnings (J31) |
| Early exposure to work incentives following childbirth (J22) | Higher likelihood of high experience (C92) |
| Early exposure to work incentives (J68) | Long-lasting benefits for mothers (J13) |