Having Children Triggers Misallocation of Skills and Talent? How Children Affect the Occupational Choices of Women over the Lifecourse

Monika Oczkowska, Warsaw School of Economics SGH
Magdalena Smyk-Szymanska , SGH Warsaw School of Economics

Childbirth is a pivotal event shaping parental labour market decisions, with substantial evidence showing that women’s careers are far more affected than men’s. Prior studies have documented reductions in female labour supply, wage penalties, and transitions into more flexible but lower-payed jobs following motherhood, contributing to long-lasting gender disparities in employment outcomes. Using data from the Gender and Generations Survey and the Survey of Health, Ageing and Retirement in Europe, we document how childbirth affects occupational mobility of mothers on a more granular level, which allows us to interpret the work-related transitions following childbirth as a misallocation of skill and talent. This project aims at extending the current understanding of gendered career dynamics beyond labour-supply effects, offering new insights into the mechanisms behind the persistent gender inequality in labour market performance.

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 Presented in Session P7. Education, Labor Market, and Economic Issues