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Establishment-level wage effects of entering motherhood

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  • Miriam Beblo
  • Stefan Bender
  • Elke Wolf
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    Abstract

    We analyse the wage effects following employment breaks of women who enter motherhood using a novel matching approach where mothers' wages upon return to work are compared to those of their female colleagues within the same establishment. Using an administrative German data set, we apply a fixed-effects propensity score matching based on information two years before birth of the first child. Our results yield new insights into the nature of the wage penalty associated with motherhood: when matching with establishment-specific effects we find that first births reduce women's wages by 19%, whereas ignoring the identifier and matching across all establishments would yield a wage cut of 26%. We therefore conclude that selection into establishments is an important explanatory factor for the family pay gap. Copyright 2009 , Oxford University Press.

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    Bibliographic Info

    Article provided by Oxford University Press in its journal Oxford Economic Papers.

    Volume (Year): 61 (2009)
    Issue (Month): suppl_1 (April)
    Pages: i11-i34

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    Handle: RePEc:oup:oxecpp:v:61:y:2009:i:suppl_1:p:i11-i34

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    Cited by:
    1. Niklas Potrafke, 2011. "Unemployment, Human Capital Depreciation and Pension Benefits: An Empirical Evaluation of German Data," Working Paper Series of the Department of Economics, University of Konstanz 2011-05, Department of Economics, University of Konstanz.
    2. Alessandro Cigno, 2013. "Is Marriage as Good as a Contract?," CESifo Working Paper Series 4555, CESifo Group Munich.
    3. Felfe, Christina, 2012. "The motherhood wage gap: What about job amenities?," Labour Economics, Elsevier, vol. 19(1), pages 59-67.

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