Menopause is a major biological shock to women, marking the end of their reproductive years. Despite its relevance, scant research has studied how it impacts social dynamics, labour market outcomes, or health care demand. Using high-quality linked national register administrative data combined with a stacked difference-in-differences design, we estimate the effect of menopause diagnosis on marriage stability, earnings, reliance on social safety net programs, and demand for medical care. We find that menopause affects a broad swath of women’s lives, ranging from increased visits to doctors upon the menopause onset to a persistent decline in earnings and increased used of social transfers. The reduction on earnings is similar to that found for studies on the child “penalty” and it amounts to 20% relative to pre-menopause level. The negative impacts are driven for workplaces with more than 16 employees and with a smaller share of female coworkers aged 45 or older. Our results suggest that policies aimed at supporting women that suffer more serious symptoms around the menopausal transition may have significant labor market benefits.
Abstract
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