If not now, when? The timing of childbirth and labor market outcomes

We study the effect of childbirth and birth timing on female labor market outcomes in Italy. The impact is traced up to 21 years since school completion by estimating a factor analytic model with dynamic selection into treatments. We find that childbirth, especially the first delivery, negatively affects female earnings and participation. Women having their first child soon after school exit catch up with childless women after 12-15 years. The negative consequences are smaller if the first child is delayed up to 7-9 years after school completion or if a second childbirth occurs within 6 years since school exit.

Automated summary

This study finds that childbirth in Italy has negative effects on female earnings and labor participation. However, the negative consequences are smaller if the first child is delayed up to 7-9 years after school completion, or if a second childbirth occurs within 6 years since school exit.