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Maternity leave and its consequences for subsequent careers in Germany

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  • Franz, Nele

Abstract

Subject of this paper is the investigation of wage developments of women interrupting their careers for giving birth tochildren in comparison to men's wages not facing 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 the importance of legal job protection on reentry wages. Furthermore, we show that wages and the penalty for maternity differs by the duration of interruption as well as in short-, intermediate and long-run perspective. We find less wage penalty for women interrupting their careers within legal protection in the short run, but delayed compensating penalties for the same group in the long run.

Suggested Citation

  • Franz, Nele, 2014. "Maternity leave and its consequences for subsequent careers in Germany," CIW Discussion Papers 1/2014, University of Münster, Center for Interdisciplinary Economics (CIW).
    • Handle: RePEc:zbw:ciwdps:12014
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    References listed on IDEAS

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    1. 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. 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).
    6. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, March.
    7. Mette Ejrnæs & Astrid Kunze, 2013. "Work and Wage Dynamics around Childbirth," Scandinavian Journal of Economics, Wiley Blackwell, vol. 115(3), pages 856-877, July.
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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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