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

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  • Dupuy Arnaud
  • Fernandéz-Kranz Daniel

    (ROA rm)

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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Bibliographic Info

Paper provided by Maastricht University, Research Centre for Education and the Labour Market (ROA) in its series ROA Research Memorandum with number 005.

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

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Keywords: education; training and the labour market;

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  1. Lundberg, Shelly & Rose, Elaina, 2000. "Parenthood and the earnings of married men and women," Labour Economics, Elsevier, vol. 7(6), pages 689-710, November.
  2. 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.
  3. Eckstein, Zvi & Wolpin, Kenneth I, 1989. "Dynamic Labour Force Participation of Married Women and Endogenous Work Experience," Review of Economic Studies, Wiley Blackwell, vol. 56(3), pages 375-90, July.
  4. 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.
  5. Reuben Gronau, 1982. "Sex-Related Wage Differentials and Women's Interrupted Labor Careers--The Chicken or the Egg," NBER Working Papers 1002, National Bureau of Economic Research, Inc.
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  7. 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.
  8. 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.
  9. 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.
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  11. 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, Cornell University, ILR School, vol. 56(2), pages 273-294, January.
  12. Gupta, N.D. & Smith, N., 2000. "Children and Career Interruptions: the Family Gap in Denmark," Papers 00-03, Centre for Labour Market and Social Research, Danmark-.
  13. Stephen Nickell, 1997. "Unemployment and Labor Market Rigidities: Europe versus North America," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 55-74, Summer.
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  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.
  16. Jane Waldfogel, 1998. "Understanding the "Family Gap" in Pay for Women with Children," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 137-156, Winter.
  17. 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.
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  21. 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.
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Cited by:
  1. Luis Fernando Gamboa & Blanca Zuluaga, 2011. "Is there a motherhood penalty? decomposing the family wage gap in Colombia," DOCUMENTOS DE TRABAJO 010288, UNIVERSIDAD DEL ROSARIO.
  2. Rainer, Helmut & Selvaretnam, Geetha & Ulph, David, 2008. "Assisted Reproductive Technologies (ART) in a Model of Fertility Choice," SIRE Discussion Papers 2008-09, Scottish Institute for Research in Economics (SIRE).
  3. Alena Bicakova, 2010. "Gender Unemployment Gaps: Evidence from the New EU Member States," CERGE-EI Working Papers wp410, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
  4. Isabell Koske & Jean-Marc Fournier & Isabelle Wanner, 2012. "Less Income Inequality and More Growth – Are They Compatible? Part 2. The Distribution of Labour Income," OECD Economics Department Working Papers 925, OECD Publishing.
  5. repec:ese:iserwp:2008-02 is not listed on IDEAS
  6. Salverda, Wiemer & Checchi, Daniele, 2014. "Labour-Market Institutions and the Dispersion of Wage Earnings," IZA Discussion Papers 8220, Institute for the Study of Labor (IZA).

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