The long-run labour market consequences of teenage motherhood in Britain

Common wisdom states that teenage childbearing reduces schooling, labour market experience and adult wages. However, the decisions to be a teenage mother, to quit school, and be less attached to the labour market might all stem from some personal or family characteristics.  Using the National Child Development Study (NCDS), we find that in Britain teenage childbearing decreases the probability of post-16 schooling by 12–24%. Employment experience is reduced by up to three years, and the adult pay differential ranges from 5% to 22%. The negative impact of teen motherhood on various adult outcomes is not only due to some pre-motherhood characteristics; hence policies aiming to encourage return to school and participation in the labour market may be an efficient way to reduce the long-term consequences of teenage pregnancy. Received: 10 October 2000/Accepted: 3 April 2002 All correspondence to Arnaud Chevalier. We are indebted to Martyn Andrews, Colm Harmon, Gauthier Lanot, Ian Walker and to the participants at the EEEG annual meeting (Southampton, 2000) and seminars at Keele University, LSE and Warwick University for their comments that greatly improved earlier versions of this paper. We also thank two anonymous referees and Christoph Schmidt for their insightful comments. All remaining errors are ours. The data was supplied by the Economic and Research Council's Data Archive at the University of Essex and are used with permission of the Controller of Her Majesty's Stationery Office. Responsible editor: Christoph M. Schmidt.     

The motherhood wage gap in the UK over the life cycle

This paper examines the impact of children on female wages in the UK using the National Child Development Study. The use of a longitudinal cohort study enables to estimate of the effect of children on wages for the same sample of women throughout their life-cycle until completed fertility. This study confirms some of the negative effects of motherhood on wages as found in the previous literature. The effect of a first child is on average 8.1 % at age 23, 22 % at age 33, 4.8 % at age 42 and 0 % at age 51. The effect of a second child is 16 % on average at age 33 only. Longitudinal nature of the data also allows the estimation of long run effects and the results indicate that the negative wage gap of motherhood persists even 30 years after first entering motherhood.     

Cost of Childcare and Female Employment in the UK

Abstract. Mothers of young children may be prevented from working because of the high cost of available, formal childcare. In the UK, the typical cost of a nursery place is more than the average household spends a year on either food or housing. This study examines the extent to which female labour force participation is affected by the cost of formal childcare. The results suggest that childcare price subsidies have a modest impact both on labour force participation and on the use of formal childcare.