Parental Leave Duration and Wages: A Structural Approach
AbstractWe investigate the existence of causal mechanisms from parental leave duration to subsequent wages. Our instrumental variable is a French reform giving financial incentives to take a parental leave. Two longitudinal datasets provide us with information on wages and familial background from 1976 to 2005. In our context, panel data estimations potentially suffer from unobserved heterogeneity, endogeneity and selection. We implement an innovative procedure proposed by Semykina and Wooldridge (2010) to take into account these three problems simultaneously. We find that parental leave duration has a significant and negative causal impact on later wages
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Bibliographic InfoPaper provided by Centre de Recherche en Economie et Statistique in its series Working Papers with number 2012-04.
Date of creation: Feb 2012
Date of revision:
Parental leave duration; wages; selection; endogeneity; panel data;
Find related papers by JEL classification:
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-05-22 (All new papers)
- NEP-LAB-2012-05-22 (Labour Economics)
- NEP-LMA-2012-05-22 (Labor Markets - Supply, Demand, & Wages)
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