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The wage premium of delaying motherhood in Sweden
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2013 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

This thesis examines how delaying motherhood affects gross hourly wage in Sweden. The analysis is based on individual-level information about women who have given birth to at least one child and who are cohabiting with their partner. The (cross-sectional) data are from LNU 2000. To isolate the causal direction and prevent omitted variable bias, OLS estimates are complemented with instrumental variable (IV) regressions where age at first birth (A1B) is instrumented by age when relationship started (approximated by age when moving in together). Delaying motherhood one year leads to an approximate wage increase of 1 %. Comparing an average difference in A1B of 6 years, women who have their first child after turning 30, have on average about 8-10 % higher hourly wage than younger first-time mothers. Factors like accumulated experience, type of work and place of residence proves to explain a part of the motherhood delay wage premium. Furthermore, the results indicate that women with a university degree benefit the most from delaying motherhood, as well as women who work as senior officials. The estimates from using “age when relationship started” as an instrument are only valid under questionable assumptions, thus further studies needs to be conducted to clarify the results.

Place, publisher, year, edition, pages
Keyword [en]
Motherhood timing, fertility delay, female wages, mommy track
National Category
URN: urn:nbn:se:uu:diva-198184OAI: oai:DiVA.org:uu-198184DiVA: diva2:615390
Social and Behavioural Science, Law
Available from: 2013-04-10 Created: 2013-04-10 Last updated: 2013-04-11Bibliographically approved

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