Figure 4
Two histograms depict the distribution of placebo child penalty estimates. Panel A shows the histogram of all placebo estimates. The x-axis represents the estimated placebo effect ranging from -0.1 to 0.1, and the y-axis represents the density. A red dashed line indicates the actual estimate at approximately -0.05. The 2-sided p-value is 0.0254. Panel B shows the histogram of best-fit placebo estimates. The x-axis represents the estimated placebo effect ranging from -0.1 to 0.1, and the y-axis represents the density. A red dashed line indicates the actual estimate at approximately -0.05. The 2-sided p-value is 0.0263.Placebo estimates. Notes: Distribution of placebo child penalty estimates. The blue lines represent histograms of placebo estimates of the overall effect of childbirth on employment, while the red dashed line represents the actual estimate in Model 1 of Table 2. In Panel (a), all placebos are used, whereas in Panel (b), only 75% of the placebos with the least RMSPE are used; 2-sided p-values are calculated using these placebo estimates. Source: Authors’ elaborations