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Maternity Leave and Its Consequences for Subsequent Careers in Germany

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  • Nele E. Franz

Abstract

This paper analyzes the wage development of mothers interrupting their careers, in comparison to the wages of men who do not face a parental interruption. We estimate OLS regression models for different subcategories defined by age and point in time. We use data from the German Socioeconomic Panel from 1984 to 2011, to show that wages and the financial penalty for maternity differ according to the duration of interruption. We find a lower wage penalty in the short run for women interrupting their careers who are legally protected, but merely delayed penalties for the same group in the long run.

Suggested Citation

  • Nele E. Franz, 2014. "Maternity Leave and Its Consequences for Subsequent Careers in Germany," SOEPpapers on Multidisciplinary Panel Data Research 722, DIW Berlin, The German Socio-Economic Panel (SOEP).
    • Handle: RePEc:diw:diwsop:diw_sp722
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    References listed on IDEAS

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    1. Mette Ejrnæs & Astrid Kunze, 2013. "Work and Wage Dynamics around Childbirth," Scandinavian Journal of Economics, Wiley Blackwell, vol. 115(3), pages 856-877, July.
    2. 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.
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    5. 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 505-545, July.
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    7. Kunze, Astrid, 2002. "The Timing of Careers and Human Capital Depreciation," IZA Discussion Papers 509, Institute of Labor Economics (IZA).
    8. Torben Kuhlenkasper & Göran Kauermann, 2009. "Duration of Maternity Leave in Germany: A Case Study of Nonparametric Hazard Models and Penalized Splines," SOEPpapers on Multidisciplinary Panel Data Research 213, DIW Berlin, The German Socio-Economic Panel (SOEP).
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    10. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, March.
    11. Deborah J. Anderson & Melissa Binder & Kate Krause, 2003. "The Motherhood Wage Penalty Revisited: Experience, Heterogeneity, Work Effort, and Work-Schedule Flexibility," ILR Review, Cornell University, ILR School, vol. 56(2), pages 273-294, January.
    12. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP) – Scope, Evolution and Enhancements," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(1), pages 139-169.
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    More about this item

    Keywords

    Human capital; parental leave; wages; OLS;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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