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What Does the Stork Bring to Women’s Working Career?

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Author Info
Lia Pacelli
Silvia Pasqua
Claudia Villosio

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Abstract

We analyse the effects of motherhood on women’s working career using WHIP, a database that records individual work histories together with childbearing events. We investigate two main issues: the career penalty and the wage penalty (better known in the literature as family wage gap). We focus on a group of women (i) highly attached to the labour market before maternity, and (ii) that have only one child. Hence, we search for penalties among those who are less likely to experience them, providing a lower bound of the average penalty in the whole population. With respect to the former penalty, we focus on selection of women out of employment after childbirth and we find a significant increase in the probability of transition from employment to non-employment for new mothers. Moreover part time mothers are less likely to exit, pointing to part time as a family-friendly contract. With respect to wages, we restrict the analysis to continuously working women and analyse their wage profiles following a difference in differences approach. We find that conditional average wage of future mothers is significantly higher than that of non mothers before childbearing and it becomes significantly lower afterward, showing no sign of a closing gap after 4 years.

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Publisher Info
Paper provided by LABORatorio R. Revelli, Centre for Employment Studies in its series LABORatorio R. Revelli Working Papers Series with number 58.

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Date of creation: 2007
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Handle: RePEc:cca:wplabo:58

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Related research
Keywords: motherhood employment transitions wage penalty career.

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Find related papers by JEL classification:
J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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  1. Shelley Phipps & Peter Burton & Lynn Lethbridge, 2001. "In and out of the labour market: long-term income consequences of child-related interruptions to women's paid work," Canadian Journal of Economics, Canadian Economics Association, vol. 34(2), pages 411-429, May. [Downloadable!] (restricted)
  2. Gutierrez-Domenech, Maria, 2005. "Employment after motherhood: a European comparison," Labour Economics, Elsevier, vol. 12(1), pages 99-123, February. [Downloadable!] (restricted)
  3. Marit RÃnsen & Marianne SundstrÃm, 1996. "Maternal employment in Scandinavia: A comparison of the after-birth employment activity of Norwegian and Swedish women," Journal of Population Economics, Springer, vol. 9(3), pages 267-285.
  4. 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. [Downloadable!] (restricted)
  5. Johannes Geyer & Viktor Steiner, 2007. "Short-Run and Long-Term Effects of Childbirth on Mothers’ Employment and Working Hours Across Institutional Regimes: An Empirical Analysis Based on the European Community Household Panel," IZA Discussion Papers 2693, Institute for the Study of Labor (IZA). [Downloadable!]
  6. Deborah J. Anderson & Melissa Binder & Kate Krause, 2002. "The Motherhood Wage Penalty: Which Mothers Pay It and Why?," American Economic Review, American Economic Association, vol. 92(2), pages 354-358, May. [Downloadable!] (restricted)
  7. Albrecht, James W. & Edin, Per-Anders & Sundström, Marianne & Vroman, Susan B., 1996. "Career Interruptions and Subsequent Earnings: A Reexamination Using Swedish Data," Working Paper Series 1996:23, Uppsala University, Department of Economics.
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  8. Daniela Del Boca & Silvia Pasqua & Chiara Pronzato, 2004. "Employment and Fertility Decisions in Italy, France and the U.K," CHILD Working Papers wp08_04, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY. [Downloadable!]
  9. Jacobson, Louis S & LaLonde, Robert J & Sullivan, Daniel G, 1993. "Earnings Losses of Displaced Workers," American Economic Review, American Economic Association, vol. 83(4), pages 685-709, September. [Downloadable!] (restricted)
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  10. Joshi, Heather & Paci, Pierella & Waldfogel, Jane, 1999. "The Wages of Motherhood: Better or Worse?," Cambridge Journal of Economics, Oxford University Press, vol. 23(5), pages 543-64, September.
  11. repec:ese:iserwp: is not listed on IDEAS
  12. Johannes Geyer & Viktor Steiner, 2007. "Short-Run and Long-Term Effects of Childbirth on Mothers' Employment and Working Hours across Institutional Regimes : An Empirical Analysis Based on the European Community Household Panel," Discussion Papers of DIW Berlin 682, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  13. Massimiliano Bratti & Emilia Del Bono & Daniela Vuri, 2005. "New Mothers' Labour Force Participation in Italy: The Role of Job Characteristics," LABOUR, CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd, vol. 19(s1), pages 79-121, December. [Downloadable!] (restricted)
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  14. Alfredo Ariza & Sara de la Rica & Arantza Ugidos, 2003. "The effect of flexibility in working hours on fertility: A comparative analysis," DFAEII Working Papers 200308, University of the Basque Country - Department of Foundations of Economic Analysis II. [Downloadable!]
  15. Datta Gupta, Nabanita & Smith, Nina, 2001. "Children and Career Interruptions: The Family Gap in Denmark," IZA Discussion Papers 263, Institute for the Study of Labor (IZA). [Downloadable!]
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  16. Christopher J. Ruhm, 1998. "The Economic Consequences Of Parental Leave Mandates: Lessons From Europe," The Quarterly Journal of Economics, MIT Press, vol. 113(1), pages 285-317, February. [Downloadable!] (restricted)
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  17. Ronsen, Marit & Sundstrom, Marianne, 1996. "Maternal Employment in Scandinavia: A Comparison of the After-Birth Employment Activity of Norwegian and Swedish Women," Journal of Population Economics, Springer, vol. 9(3), pages 267-85, August.
  18. Maria Gutiérrez-Domènech, 2005. "Employment Transitions after Motherhood in Spain," LABOUR, CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd, vol. 19(s1), pages 123-148, December. [Downloadable!] (restricted)
  19. Cécile Wetzels & Aslan Zorlu, 2003. "Wage effects of motherhood: a double selection approach," Working Papers 22, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho. [Downloadable!]
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