Identifying Direct and Indirect Effects. Estimating th Costs of Motherhood Using Matching Estimators
AbstractWe estimate the effect of motherhood on wages using matching. We distinguish between net and direct effects. The net effect includes the total wage costs, whereas the direct represents the causal effect. Since covariates are likely affected by motherhood, the latter effect is not immediately uncovered. We therefore implement two strategies: First, we confine the analysis to consider sector-specific treatment effects. Second, we impose additive separability on the outcome equation. We find negative net effects that vary little with sector. The direct effect is small and negative in the public sector and insignificant in the private sector.
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Bibliographic InfoPaper provided by Stanford Institute for Economic Policy Research in its series Discussion Papers with number 03-023.
Date of creation: Apr 2004
Date of revision:
Fertility; family gap; wages; matching;
Find related papers by JEL classification:
- C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- 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
- J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
- J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
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