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International Differences in the Family Gap in Pay: the Role of Labor Market Institutions

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Author Info
Dupuy Arnaud
Fernandéz-Kranz Daniel (ROA rm)

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Abstract

Using microdata for 35 countries over the period 1985-1994-2002 we find thatlabor market institutions traditionally associated to more compressed wagestructures are associated to a higher family gap. Our results indicate that thesepolicies reduce the price effect of having children but aggravate the humancapital loss due to motherhood. We also find evidence that policies that helpwomen continue in the same job after childbirth decrease the family gap. Of allthe countries we study, mothers in Southern Europe suffer the biggest familygap and our analysis indicates that this is due to the bad combination of labormarket policies in these countries. Our results are robust to specificationchanges and indicate that the main reason mothers lag behind other women interms of earnings is the loss of accumulated job market experience caused bycareer breaks around childbirth.

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Publisher Info
Paper provided by Maastricht : ROA, Research Centre for Education and the Labour Market in its series Research Memoranda with number 005.

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Date of creation: 2007
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Handle: RePEc:dgr:umaror:2007005

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Related research
Keywords: education; training and the labour market;

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References listed on IDEAS
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.:
  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. Davies, Rhys & Pierre, Gaelle, 2005. "The family gap in pay in Europe: a cross-country study," Labour Economics, Elsevier, vol. 12(4), pages 469-486, August. [Downloadable!] (restricted)
  3. Assar Lindbeck & Dennis J. Snower, 2001. "Insiders versus Outsiders," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 165-188, Winter. [Downloadable!] (restricted)
  4. Francine D. Blau & Lawrence M. Kahn, 2003. "Understanding International Differences in the Gender Pay Gap," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 106-144, January. [Downloadable!]
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  5. Alícia Adserà, 2004. "Changing fertility rates in developed countries. The impact of labor market institutions," Journal of Population Economics, Springer, vol. 17(1), pages 17-43, February. [Downloadable!] (restricted)
  6. Millimet, Daniel L, 2000. "The Impact of Children on Wages, Job Tenure, and the Division of Household Labour," Economic Journal, Royal Economic Society, vol. 110(462), pages C139-57, March. [Downloadable!] (restricted)
    Other versions:
  7. Lundberg, Shelly & Rose, Elaina, 2000. "Parenthood and the earnings of married men and women," Labour Economics, Elsevier, vol. 7(6), pages 689-710, November. [Downloadable!] (restricted)
  8. Dolado, Juan J. & Jansen, Marcel & Jimeno, Juan Francisco, 2005. "Dual Employment Protection Legislation: A Framework for Analysis," CEPR Discussion Papers 5033, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  9. Deborah J. Anderson & Melissa Binder & Kate Krause, 2003. "The motherhood wage penalty revisited: experience, heterogeneity, work effort, and work-schedule flexibility," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 56(2), pages 273-294, January.
  10. Eckstein, Zvi & Wolpin, Kenneth I, 1989. "Dynamic Labour Force Participation of Married Women and Endogenous Work Experience," Review of Economic Studies, Blackwell Publishing, vol. 56(3), pages 375-90, July.
  11. 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)
  12. Siebert, Horst, 1997. "Labor Market Rigidities: At the Root of Unemployment in Europe," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 37-54, Summer. [Downloadable!] (restricted)
  13. 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. [Downloadable!] (restricted)
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  14. Altug, Sumru & Miller, Robert A, 1998. "The Effect of Work Experience on Female Wages and Labour Supply," Review of Economic Studies, Blackwell Publishing, vol. 65(1), pages 45-85, January. [Downloadable!] (restricted)
  15. Topel, Robert H & Ward, Michael P, 1992. "Job Mobility and the Careers of Young Men," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 439-79, May. [Downloadable!] (restricted)
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  16. Nickell, Stephen, 1997. "Unemployment and Labor Market Rigidities: Europe versus North America," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 55-74, Summer. [Downloadable!] (restricted)
  17. Waldfogel, Jane, 1998. "Understanding the "Family Gap" in Pay for Women with Children," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 137-56, Winter. [Downloadable!] (restricted)
  18. Juan Botero & Simeon Djankov & Rafael Porta & Florencio C. Lopez-De-Silanes, 2004. "The Regulation of Labor," The Quarterly Journal of Economics, MIT Press, vol. 119(4), pages 1339-1382, November. [Downloadable!] (restricted)
    Other versions:
    • Simeon Djankov & Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer & Juan Botero, 2003. "The Regulation of Labor," NBER Working Papers 9756, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  19. 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. [Downloadable!] (restricted)
  20. Waldfogel, Jane, 1998. "The Family Gap for Young Women in the United States and Britain: Can Maternity Leave Make a Difference?," Journal of Labor Economics, University of Chicago Press, vol. 16(3), pages 505-45, July. [Downloadable!] (restricted)
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(explanations, 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.)

  1. Helmut Rainer & Geetha Selvaretnam & David Ulph, 2008. "Assisted Reproductive Technologies (ART) in a Model of Fertility Choice," Discussion Paper Series, Department of Economics 0801, Department of Economics, University of St. Andrews. [Downloadable!]
  2. repec:ese:iserwp: is not listed on IDEAS
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