Establishment-level wage effects of entering motherhood
AbstractWe 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 InfoArticle provided by Oxford University Press in its journal Oxford Economic Papers.
Volume (Year): 61 (2009)
Issue (Month): suppl_1 (April)
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- 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.
- Potrafke, Niklas, 2012. "Unemployment, human capital depreciation and pension benefits: an empirical evaluation of German data," Journal of Pension Economics and Finance, Cambridge University Press, vol. 11(02), pages 223-241, April.
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