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  5. The Labor Market Returns to Delaying Pregnancy

American Economic Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

The Labor Market Returns to Delaying Pregnancy

  • Yana Gallen
  • Juanna Schrøter Joensen
  • Eva Rye Johansen
  • Gregory F. Veramendi
American Economic Review (Forthcoming)

Abstract

We study the labor market impact of unplanned pregnancy among women using long-acting reversible contraceptives to delay pregnancy. While most women successfully delay, some have unplanned pregnancies, providing quasi-random variation in pregnancy timing. Analyzing linked health and labor market data from Sweden, we find that unplanned pregnancies halt women’s career progression, resulting in income losses of 19% five years later. We find similar effects of unplanned births among women using short-acting reversible contraceptives. Using pregnancy as an instrument for birth in a dynamic treatment effect framework, effects of unplanned children are more detrimental for younger women and those enrolled in education.

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