The Willingness to Pay for Job Amenities: Evidence from Mothers' Return to Work
AbstractThis study is the first to estimate mothers’ marginal willingness to pay (MWP) for job amenities directly. Its identification strategy relies on German maternity leave length. The key aspect of the maternal leave framework is that mothers can decide whether and when to return to their guaranteed job. Thus, in contrast to previous studies that analyze the job search of employed workers, this framework allows us to overcome the limitation of not observing the wage/amenity offer process. A theoretical model of the leave length decision is derived from a random utility approach. Using data from the German Socio-Economic Panel and the Qualification and Career Survey, this model is estimated by a discrete duration method. The MWP for amenities can be inferred through the estimated elasticities of the leave length with respect to the amenities and the wage. The results provide evidence that mothers are willing to sacrifice a significant fraction of their wage to reduce hazards (22%) and to enjoy a flexible working schedule (36-56%).
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2743.
Date of creation: 2009
Date of revision:
marginal willingness to pay; maternal labor supply; discrete duration models;
Other versions of this item:
- Christina Felfe, 2009. "The Willingness to Pay for Job Amenities: Evidence from Mothers' Return to Work," SOEPpapers on Multidisciplinary Panel Data Research 247, DIW Berlin, The German Socio-Economic Panel (SOEP).
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- StÃˆphane Bonhomme & GrÃˆgory Jolivet, 2009.
"The pervasive absence of compensating differentials,"
Journal of Applied Econometrics, John Wiley & Sons, Ltd.,
John Wiley & Sons, Ltd., vol. 24(5), pages 763-795.
- StÃ©phane Bonhomme & GrÃ©gory Jolivet, 2005. "The Pervasive Absence of Compensating Differentials," Working Papers, Centre de Recherche en Economie et Statistique 2005-28, Centre de Recherche en Economie et Statistique.
- Bratti, Massimiliano & Del Bono, Emilia & Vuri, Daniela, 2004.
"New Mothers' Labour Force Participation in Italy: The Role of Job Characteristics,"
IZA Discussion Papers
1111, Institute for the Study of Labor (IZA).
- Massimiliano Bratti & Emilia Del Bono & Daniela Vuri, 2005. "New Mothers' Labour Force Participation in Italy: The Role of Job Characteristics," LABOUR, CEIS, CEIS, vol. 19(s1), pages 79-121, December.
- Emilia Del Bono & Massimiliano Bratti & Daniela Vuri, 2004. "New mothersâ€™ labour force participation in Italy: the role of job characteristics," CHILD Working Papers, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY wp05_04, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
- Meyer, Bruce D, 1990.
"Unemployment Insurance and Unemployment Spells,"
Econometrica, Econometric Society,
Econometric Society, vol. 58(4), pages 757-82, July.
- Ch. LAUER & A.M. WEBER, 2003.
"Employment of Mothers after Childbirth : A French-German Comparison,"
Working Papers ERMES, ERMES, University Paris 2
0309, ERMES, University Paris 2.
- Weber, Andrea Maria & Lauer, Charlotte, 2003. "Employment of Mothers After Childbirth: French-German Comparison," ZEW Discussion Papers 03-50, ZEW - Zentrum fÃ¼r EuropÃ¤ische Wirtschaftsforschung / Center for European Economic Research.
- Jan Ondrich & C. Spiess & Qing Yang & Gert Wagner, 2003. "The Liberalization of Maternity Leave Policy and the Return to Work after Childbirth in Germany," Review of Economics of the Household, Springer, Springer, vol. 1(1), pages 77-110, January.
- Han, Aaron & Hausman, Jerry A, 1990. "Flexible Parametric Estimation of Duration and Competing Risk Models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 5(1), pages 1-28, January-M.
- Ernesto Villanueva, 2007. "Estimating Compensating Wage Differentials Using Voluntary Job Changes: Evidence from Germany," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 60(4), pages 544-561, July.
- Hwang, Hae-shin & Mortensen, Dale T & Reed, W Robert, 1998. "Hedonic Wages and Labor Market Search," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 16(4), pages 815-47, October.
- Christina Felfe, 2008. "The Child Penalty - What about Job Amenities?," University of St. Gallen Department of Economics working paper series 2008 2008-22, Department of Economics, University of St. Gallen.
- Thomas DeLeire & Helen Levy, 2004. "Worker Sorting and the Risk of Death on the Job," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 22(4), pages 925-954, October.
- Timothy J. Gronberg & W. Robert Reed, 1994. "Estimating Workers' Marginal Willingness to Pay for Job Attributes Using Duration Data," Journal of Human Resources, University of Wisconsin Press, vol. 29(3), pages 911-931.
- Michael Funke & Yu-Fu Chen, 2009.
"Booms, Recessions and Financial Turmoil: A Fresh Look at Investment Decisions under Cyclical Uncertainty,"
Quantitative Macroeconomics Working Papers, Hamburg University, Department of Economics
20908, Hamburg University, Department of Economics.
- Yu-Fu Chen & Michael Funke, 2010. "Booms, Recessions And Financial Turmoil: A Fresh Look At Investment Decisions Under Cyclical Uncertainty," Scottish Journal of Political Economy, Scottish Economic Society, vol. 57(s1), pages 290-317, 07.
- Yu-Fu Chen & Michael Funke, 2009. "Booms, Recessions and Financial Turmoil: A Fresh Look at Investment Decisions under Cyclical Uncertainty," CESifo Working Paper Series 2759, CESifo Group Munich.
- Michael Funke & Yu-Fu Chen, 2010. "Booms, recessions and financial turmoil: A fresh look at investment decisions under cyclical uncertainty," Quantitative Macroeconomics Working Papers, Hamburg University, Department of Economics 21007, Hamburg University, Department of Economics.
- Yu-Fu Chen & Michael Funke, 2009. "Booms, Recessions and Financial Turmoil: A Fresh Look at Investment Decisions under Cyclical Uncertainty," Dundee Discussion Papers in Economics, Economic Studies, University of Dundee 225, Economic Studies, University of Dundee.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julio Saavedra).
If references are entirely missing, you can add them using this form.