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International differences in the family gap in pay: the role of labour market institutions

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  • Arnaud Dupuy
  • Daniel Fernandez-Kranz

Abstract

Using the microdata for 35 countries over the period 1985 to 1994 and 1994 to 2002 we find that labour market institutions are traditionally associated with more compressed wage structures and a higher family gap. Our results indicate that these policies reduce the price effect of having children but aggravate the human capital loss due to motherhood. We also find evidence that policies that help women to continue in the same job after childbirth decrease the family gap. Of all the countries we study, mothers in Southern Europe suffer the biggest family gap and our analysis indicates that this is due to the bad combination of labour market policies in these countries. Our results are robust to specification changes and indicate that the main reason for mothers to lag behind other women in terms of earnings is the loss of accumulated job market experience caused by career breaks around childbirth.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 43 (2011)
Issue (Month): 4 ()
Pages: 413-438

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Handle: RePEc:taf:applec:v:43:y:2011:i:4:p:413-438

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References

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  1. Daniel L. Millimet, 1999. "The Impact of Children on Wages, Job Tenure, and the Division of Household Labor," Working Papers 99-13, Brown University, Department of Economics.
  2. Datta Gupta, Nabanita & Smith, Nina, 2002. "Children and Career Interruptions: The Family Gap in Denmark," Economica, London School of Economics and Political Science, vol. 69(276), pages 609-29, November.
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  5. Jane Waldfogel, 1998. "Understanding the "Family Gap" in Pay for Women with Children," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 137-156, Winter.
  6. Waldfogel, Jane, 1995. "The Price of Motherhood: Family Status and Women's Pay in a Young British Cohort," Oxford Economic Papers, Oxford University Press, vol. 47(4), pages 584-610, October.
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  17. Andrés Erosa & Luisa Fuster & Diego Restuccia, 2002. "Fertility Decisions and Gender Differences in Labor Turnover, Employment, and Wages," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(4), pages 856-891, October.
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Cited by:
  1. Luis Fernando Gamboa & Blanca Zuluaga, 2011. "Is there a motherhood penalty? Decomposing the family wage gap in Colombia," Working Papers 220, ECINEQ, Society for the Study of Economic Inequality.
  2. Helmut Rainer & Geethanjali Selvaretnam & David Ulph, 2011. "Assisted reproductive technologies (ART) in a model of fertility choice," Journal of Population Economics, Springer, vol. 24(3), pages 1101-1132, July.
  3. Salverda, Wiemer & Checchi, Daniele, 2014. "Labour-Market Institutions and the Dispersion of Wage Earnings," IZA Discussion Papers 8220, Institute for the Study of Labor (IZA).
  4. 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.
  5. Alena Bicakova, 2010. "Gender Unemployment Gaps: Evidence from the New EU Member States," CERGE-EI Working Papers wp410, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
  6. repec:ese:iserwp:2008-02 is not listed on IDEAS

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