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Return to Work - Mothers' Willingness to Pay for Job Amenities

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Author Info
Christina Felfe ()
Abstract

How can we encourage untapped work potentials, such as young mothers, to participate in the labor market? The present study addresses this issue by providing a direct measure for the relevance of job-related amenities for mothers work decision, namely mothers’ marginal willingness to pay (MWP) for job amenities. Its identification strategy relies on German maternity leave length data. Using data from the German Socio-Economic Panel and the Qualification and Career Survey, mothers' leave length decision is estimated by a discrete duration method that assumes a logistic hazard function. The MWP for amenities can be inferred through the estimated elasticities of the leave length with respect to the disamenities and the wage. The results provide evidence that mothers are willing to sacrifice a significant fraction of their wage to reduce hazardous working conditions (more than 20%) and to enjoy a working schedule compatible with available daycare (more than 35%).

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File URL: http://www.vwa.unisg.ch/RePEc/usg/dp2008/DP-25-Fe.pdf
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Publisher Info
Paper provided by Department of Economics, University of St. Gallen in its series University of St. Gallen Department of Economics working paper series 2008 with number 2008-25.

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Length: 39 pages
Date of creation: Nov 2008
Date of revision:
Handle: RePEc:usg:dp2008:2008-25

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Postal: Dufourstrasse 50, CH - 9000 St.Gallen
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Web page: http://www.vwa.unisg.ch/
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Related research
Keywords: Marginal Willingness to Pay; Maternal Labor Supply; Discrete Duration Models;

Find related papers by JEL classification:
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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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. Thomas DeLeire & Helen Levy, 2004. "Worker Sorting and the Risk of Death on the Job," Journal of Labor Economics, University of Chicago Press, vol. 22(4), pages 925-954, October. [Downloadable!]
  2. Duncan, Greg J & Holmlund, Bertil, 1983. "Was Adam Smith Right after All? Another Test of the Theory of Compensating Wage Differentials," Journal of Labor Economics, University of Chicago Press, vol. 1(4), pages 366-79, October. [Downloadable!] (restricted)
  3. Richard Blundell & Alan Duncan & Costas Meghir, 1998. "Estimating Labor Supply Responses Using Tax Reforms," Econometrica, Econometric Society, vol. 66(4), pages 827-862, July.
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  4. Massimiliano Bratti & Emilia Del Bono & Daniela Vuri, 2005. "New Mothers' Labour Force Participation in Italy: The Role of Job Characteristics," LABOUR, CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd, vol. 19(s1), pages 79-121, December. [Downloadable!] (restricted)
    Other versions:
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