Work detail

Measuring the Effect of the Timing of First Birth on Mothers' Wages in the Czech Republic

Author: Mgr. Magdalena Hummelová,
Year: 2019 - winter
Leaders: Mgr. Barbara Pertold-Gebicka M.A., Ph.D.
Consultants:
Work type: Economic Theory
Masters
Language: English
Pages: 80
Awards and prizes:
Link: https://is.cuni.cz/webapps/zzp/detail/190198/
Abstract: This thesis investigates the effect of fertility timing on women’s longrun wages. Following the work of Herr (2016), by considering fertility
timing in terms of labour market experience at the first birth, we study
the effect on wages observed in the window 15 to 20 years after the labour
market entry. This allows us to build different models for two groups of
mothers: those entering the labour force with and without a child. We
come to the conclusion that there is no effect of fertility timing for women
entering the labour force already having a child. For women entering the
labour force childless, the estimated postponement effect differs depending
on whether they have an earning partner or not. If they do, there is
clear cost of fertility delay by one more year (contrary to expectations)
associated with a decrease in wages by 1%. This finding is very likely
connected to a trend of lengthy parental leaves in the Czech Republic. If
a woman does not have a partner, we observe an insignificant effect of
first birth delay, yet positive. Comparing the results for women living in
versus out of Prague, we see no significant difference in the effects.

Partners

Deloitte

Sponsors

CRIF
McKinsey
Patria Finance