Abstract
This paper studies the labor supply decisions of new mothers in cohabiting relationships in the United States. Using cross-sectional data from the 1997 Cohort of the National Longitudinal Survey of Youth as well as from the March Current Population Survey Annual Demographic Supplement, this paper analyzes how the birth of a child impacts a mother’s labor supply. Different subgroups of women based on relationship status are analyzed and compared. Both cross-sectional analyses show that new mothers in cohabiting households behave differently than their married counterparts when it comes to their labor supply after the birth of a child, taking significantly shorter leaves and working more hours in the year of birth. The results also suggest that their partner’s income is not a significant factor in determining their labor supply, which differs from married mothers. This research gives us important insights into the economic decision-making behavior of these nontraditional households.
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