Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/263160 
Authors: 
Year of Publication: 
2022
Series/Report no.: 
DIW Discussion Papers No. 2016
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
I use the universe of tax returns in Germany and a regression kink design to estimate the impact of the benefit amount available to high-earning women after their first childbirth on subsequent within-couple earnings inequality. Lower benefit amounts result in a reduced earnings gap that persists beyond the benefit period for at least nine years after the birth. The longer-term impacts are driven by couples where the mother earned more than the father pre-birth. Simulations suggest it would take a 50% reduction in the benefit amount to completely eliminate long-run child penalties for sample couples. Lower benefits also reduce take-up of paid leave by mothers, lower the chances of having further children, and have no impact on marital stability.
Subjects: 
Child penalties
gender inequality in earnings
social norms
parental leave policy
regression kink design
JEL: 
D63
H31
J13
J16
K31
M52
Z13
Document Type: 
Working Paper

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