The Role of Firms for Children's Development

Huebener Mathias, BiB
Malin Mahlbacher , Federal Institute for Population Research (BiB)
Susanne Schmid, University of Oldenburg
Gundula Zoch, University of Oldenburg

This paper analyses the link between maternal pre-birth employment, firm characteristics, and child development. As female labour force participation increases, family dynamics and early childhood environments have evolved. While existing literature focuses on maternal employment post-childbirth, previous studies have paid little attention to the role of pre-birth labour market experiences and firm attributes for child development. However, these factors can help accumulate resources and create conditions that facilitate women’s re-entry into the labour market and their capacity to reconcile work and family life after birth. This study aims to fill this research gap by utilizing rich panel data on child development from the German National Education Panel Study linked to administrative data on mothers’ employment histories and firm characteristics (NEPS-SC1-ADIAB7521). In the first step, we employ an event study approach to investigate how pre-birth firm characteristics, particularly family-friendliness, affect maternal re-entry into the labour market and employment after childbirth. In the second step, using OLS regression models, we study the relationship between maternal work context prior to birth and child development, considering cognitive and non-cognitive measures throughout a child's first decade. Finally, we explore potential mechanisms by examining whether pre-birth employment conditions impact parenting behaviour, maternal well-being, and other post-childbirth mediators. Preliminary findings suggest that unstable employment conditions before birth may be associated with increased behavioural problems in children. Analysing the relationship between maternal employment and firm characteristics provides valuable insights for policies aimed at fostering family-friendly workplaces and how they might support the long-term development of human capital.

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 Presented in Session P3. Migration, Economics, Policies, History