Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/245542 
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14491
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
In this paper we show that motherhood triggers changes in the allocation of talent in the labor market besides the well-known effects on gender gaps in employment and earnings. We use an event study approach with retrospective data for 29 countries drawn from SHARE to assess the labor market responses to motherhood across groups with different educational attainment, math ability by the age of 10, and personality traits. We find that while even the most talented women— both in absolute terms and relative to their husbands—leave the labor market or uptake part-time jobs after the birth of the first child, all men, including the least talented, stay employed. We also find that motherhood induces a negative selection of talents into self-employment. Overall, our results suggest relevant changes in the allocation of talent caused by gender differences in nonmarket responsibilities that can have sizable impacts on aggregate market productivity. We also show that the size of labor market responses to motherhood are larger in societies with more conservative social-norms or with weaker policies regarding work-life balance.
Subjects: 
child penalty
part-time
self-employment
motherhood
allocation of Talent
JEL: 
J13
J16
J22
J24
Document Type: 
Working Paper

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