How Much Do Work Interruptions Reduce Mothers’ Wages?

RePEc Short ID: psh655
ORCID iD: 0009-0007-2910-3539

Shenhav, Na’ama

Journal Article

How Much Do Work Interruptions Reduce Mothers’ Wages?

Abstract: Women experience large and persistent declines in earnings after having children, which in part reflects fewer hours worked while children are young. Recent studies of large policy-induced changes in mothers’ work experience in the 1990s quantify the impact of avoiding lengthy work interruptions after childbirth. The analysis shows that mothers who return to work a year sooner after childbirth earn 5-6% higher wages 10 to 20 years later. Thus, policies that encourage mothers’ return to work can lead to large improvements in their lifetime earnings.

Keywords: employment; children; incentives; Earned Income Tax Credit (EITC);