Impact of First-Birth Career Interruption on Earnings: Evidence from Administrative Data

27 Pages Posted: 4 Apr 2015

See all articles by Julie L. Hotchkiss

Julie L. Hotchkiss

Federal Reserve Bank of Atlanta; Georgia State University - Department of Economics

M. Melinda Pitts

Federal Reserve Bank of Atlanta

MaryBeth Beth Walker

Georgia State University

Multiple version iconThere are 2 versions of this paper

Date Written: November 2014

Abstract

This paper uses unique administrative data to expand the understanding of the role women's intermittency decisions play in the determination of their wages. We demonstrate that treating intermittency as exogenous significantly overstates its impact. The intermittency penalty also increases in the education level of the woman. The penalty for a woman with a high school degree with an average amount of intermittency during six years after giving birth to her first child is roughly half the penalty for a college graduate. We also demonstrate the value of using an index to capture multiple dimensions of the intermittency experience, and we illustrate the importance of firm dynamics in the determination of a woman's wage.

Keywords: intermittency, administrative data, career interruptions, fertility, labor supply, wage differentials

JEL Classification: J13, J31, J22

Suggested Citation

Hotchkiss, Julie L. and Pitts, M. Melinda and Walker, Mary Beth Beth, Impact of First-Birth Career Interruption on Earnings: Evidence from Administrative Data (November 2014). FRB Atlanta Working Paper No. 2014-23. Available at SSRN: https://ssrn.com/abstract=2580467 or http://dx.doi.org/10.2139/ssrn.2580467

Julie L. Hotchkiss

Federal Reserve Bank of Atlanta ( email )

Research Department
1000 Peachtree Street N.E.
Atlanta, GA 30309-4470
United States
404-498-8198 (Phone)
404-498-8058 (Fax)

Georgia State University - Department of Economics ( email )

P.O. Box 3992
Atlanta, GA 30302-3992
United States

M. Melinda Pitts (Contact Author)

Federal Reserve Bank of Atlanta ( email )

1000 Peachtree Street, NE
Atlanta, GA 30309-4470
United States
404-498-7009 (Phone)
404-498-8956 (Fax)

Mary Beth Beth Walker

Georgia State University ( email )

35 Broad Street
Atlanta, GA 30302
United States

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