How infant health shapes maternal earnings
摘要
This paper examines how infant health complications at birth measured by low birth weight and prematurity affect maternal labor market outcomes over the first seven years of a child’s life. Using Canadian administrative data linking birth certificates to annual tax records for 640,500 first births between 2006 and 2015, I compare mothers of unhealthy infants-those born with low birth weight or preterm-to carefully matched mothers of healthy infants. I find that mothers of unhealthy infants experience a persistent 2.6% penalty in labor force income and an 8.7% increase in the probability of zero earnings, representing approximately 10% of the total motherhood penalty. The penalty is particularly pronounced among low-income mothers, who face earnings losses 3.5 times larger than high-income mothers, and among mothers with higher-parity births, who are twice as likely to exit the labor market entirely compared to first-time mothers. Evidence from disability benefit receipt, maternity leave exhaustion, and partnership stability argues against benefit-induced work reduction, fertility adjustments, and partnership dissolution as primary drivers, pointing instead to ongoing caregiving demands from persistent child health vulnerabilities.