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  5. Long-Run Effects of Incentivizing Work After Childbirth

Long-Run Effects of Incentivizing Work After Childbirth

  • Elira Kuka
  • Na'ama Shenhav
American Economic Review (Forthcoming)

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.

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