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Panel estimates of the wage penalty for maternal leave

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  • Bianca Buligescu
  • Denis de Crombrugghe
  • Gülçin Menteşoğlu
  • Raymond Montizaan

Abstract

The focus of this paper is the size of the wage penalty due to maternal leave incurred by working mothers in Germany. Existing estimates suggest large penalties with little rebound over time. We apply recent panel data methods designed to address problems of sample selectivity, unobserved heterogeneity and endogeneity to German Socio-Economic Panel (GSOEP) data. Heckman's classic treatment of selectivity is extended to deal with both heterogeneity and simultaneity. In order to exploit the actual working hours data available in GSOEP, we develop the case of a censored tobit participation model. We also investigate the sensitivity of the results to the choice of method. Our estimates imply a maternal leave wage penalty of 10 to 14% which is less persistent over time than other studies suggest. Five years after the return to work maternal wages have caught up. Copyright 2009 Oxford University Press 2008 All rights reserved, Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/oep/gpn042
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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: i35-i55

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Handle: RePEc:oup:oxecpp:v:61:y:2009:i:suppl_1:p:i35-i55

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Cited by:
  1. Wolf, Elke, 2013. "The German part-time wage gap: bad news for men," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79969, Verein für Socialpolitik / German Economic Association.
  2. Sieds, 2011. "Complete Volume LXV n.1 2011," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - Italian Review of Economics, Demography and Statistics, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 0(1), pages 1-181.
  3. Daniel Fernández-Kranz & Núria Rodríguez-Planas, 2010. "The Part-Time Pay Penalty in a Segmented Labor Market," Working Papers 458, Barcelona Graduate School of Economics.
  4. Fitzenberger, Bernd & Sommerfeld, Katrin & Steffes, Susanne, 2013. "Causal Effects on Employment after First Birth: A Dynamic Treatment Approach," IZA Discussion Papers 7438, Institute for the Study of Labor (IZA).
  5. Laurent Lequien, 2012. "Parental Leave Duration and Wages: A Structural Approach," Working Papers 2012-04, Centre de Recherche en Economie et Statistique.
  6. Isabell Koske & Jean-Marc Fournier & Isabelle Wanner, 2012. "Less Income Inequality and More Growth – Are They Compatible? Part 2. The Distribution of Labour Income," OECD Economics Department Working Papers 925, OECD Publishing.

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