This paper analyzes the life-cycle career costs associated with child rearing and decomposes their effects into unearned wages (as women drop out of the labor market), loss of human capital, and selection into more child-friendly occupations. We estimate a dynamic life-cycle model of fertility,...

Evidence from previous studies suggests that part of the observed wage differential between males and females is due to the spells of non-participation experienced by women. During these career breaks, no new investment in human capital occurs and the existing stock of skills depreciates,...