Impact of Low Birth Weight Child on Maternal Labour Force Participation: Evidence from Taiwan

Abstract

This paper examines the impact of having a low birth weight child on maternal labour force participation. We use the instrumental variable technique, the sister fixed‐effects model and the propensity score matching method to control for the endogeneity of child health. Using a unique national merged parent–child data set from Taiwan, the within‐sister estimates indicate that having a low birth weight child reduces female employment during the first 3 years after the birth, by 1–2 percentage points. Furthermore, the adverse employment effect is found to be particularly strong for those mothers who have an illegitimate child with low birth weight.