Productivity Changes around Childbirth: Evidence from the Mutual Fund Industry

68 Pages Posted: 10 Mar 2024

See all articles by Larissa Ginzinger

Larissa Ginzinger

University of Mannheim - Finance Area; University of Mannheim - Graduate School of Economic and Social Sciences

Kun Li

Australian National University (ANU)

Alexandra Niessen-Ruenzi

European Corporate Governance Institute (ECGI); University of Mannheim - Finance Area

Gang Wang

Shanghai University of Finance and Economics

Date Written: March 7, 2024

Abstract

Societal expectations that new mothers might not be as dedicated to their careers anymore contribute to a lasting child penalty on women's labor market outcomes. Using novel data on mutual fund managers' maternity leaves, we document that women's productivity temporarily decreases around childbirth. Compared to their peers, funds of managers entering motherhood underpeform by 2.3% to 2.8% p.a. Our evidence suggests that childbirth-related distractions prevent female managers from devoting full attention to their work during this period. They reduce the number of corporate site visits and manage their portfolios less actively. Despite the transient nature of this productivity dip, which lasts until the initial six months after returning from maternity leave, children impose persistent penalties on women's careers in the mutual fund industry. We document a persistent decline in the participation rate of female managers after childbirth, and conditional on staying in the fund industry, new mothers face lower promotion prospects.

Keywords: Mutual fund performance, child penalty, women's careers

JEL Classification: J13, J16, G11, G23

Suggested Citation

Ginzinger, Larissa Katharina and Li, Kun and Niessen-Ruenzi, Alexandra and Wang, Gang, Productivity Changes around Childbirth: Evidence from the Mutual Fund Industry (March 7, 2024). Available at SSRN: https://ssrn.com/abstract=4751722 or http://dx.doi.org/10.2139/ssrn.4751722

Larissa Katharina Ginzinger (Contact Author)

University of Mannheim - Finance Area ( email )

Mannheim, 68131
Germany

University of Mannheim - Graduate School of Economic and Social Sciences ( email )

D7, 27
Mannheim, 68131
Germany

Kun Li

Australian National University (ANU) ( email )

Canberra, Australian Capital Territory 2601
Australia

Alexandra Niessen-Ruenzi

European Corporate Governance Institute (ECGI)

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

University of Mannheim - Finance Area ( email )

Mannheim, 68131
Germany

Gang Wang

Shanghai University of Finance and Economics ( email )

777 Guoding Road
Shanghai, AK Shanghai 200433
China

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