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Female wage profiles: An additive mixed model approach to employment breaks due to childcare

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  • Kuhlenkasper, Torben
  • Kauermann, Göran
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    Abstract

    The paper investigates female wage profiles in West-Germany between 1984 and 2008 using data from the German Socio Economic Panel. The empirical study focuses on the short-run wageloss due to childcare and the long-run wage-profile in post-birth employment, respectivly. This is compared with wage profiles from females who are not mothers. As statistical analysis tool Additive Mixed Models are employed and estimated seperatetly for different levels of educational achievements. The models are dynamic in that main covariate effects are allowed to vary smoothly with working experience. The intention of the paper is to demonstrate with state of the art statistical models how wages are affected by labour market experience, employment interruptions and other covariates. The educational level of the mother and the time off the job influence the amount of wageloss and the wage profile afterwards. Labour market experience, as one major determinant of human capital, influences wages heavily and follows a dynamic patter. --

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    Bibliographic Info

    Paper provided by Hamburg Institute of International Economics (HWWI) in its series HWWI Research Papers with number 2-18.

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    Date of creation: 2010
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    Handle: RePEc:zbw:hwwirp:2-18

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    Keywords: Additive Mixed Models; Dynamic Effects; Maternity Leave; Panel Data; Employment Interruption; Wage Profiles; Female Labour Supply;

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    1. 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, Duncker & Humblot, Berlin, vol. 127(1), pages 139-169.
    2. Lundberg, Shelly & Rose, Elaina, 2000. "Parenthood and the earnings of married men and women," Labour Economics, Elsevier, Elsevier, vol. 7(6), pages 689-710, November.
    3. Bernd Fitzenberger & Gaby Wunderlich, 2004. "The Changing Life Cycle Pattern In Female Employment: A Comparison Of Germany And The Uk," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(3), pages 302-328, 08.
    4. Simon Burgess & Paul Gregg & Carol Propper & Elizabeth Washbrook & ALSPAC Study Team, 2002. "Maternity Rights and Mothers' Return to Work," The Centre for Market and Public Organisation, Department of Economics, University of Bristol, UK 02/055, Department of Economics, University of Bristol, UK.
    5. Jacob Mincer & Solomon Polacheck, 1974. "Family Investments in Human Capital: Earnings of Women," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 397-431 National Bureau of Economic Research, Inc.
    6. repec:iza:izadps:dp509 is not listed on IDEAS
    7. Jan Ondrich & C. Spiess & Qing Yang & Gert Wagner, 2003. "The Liberalization of Maternity Leave Policy and the Return to Work after Childbirth in Germany," Review of Economics of the Household, Springer, Springer, vol. 1(1), pages 77-110, January.
    8. Jacob Mincer & Solomon Polachek, 1974. "Family Investments in Human Capital: Earnings of Women," NBER Chapters, in: Marriage, Family, Human Capital, and Fertility, pages 76-110 National Bureau of Economic Research, Inc.
    9. Ruppert,David & Wand,M. P. & Carroll,R. J., 2003. "Semiparametric Regression," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521780506.
    10. Munasinghe, Lalith & Reif, Tania & Henriques, Alice, 2008. "Gender gap in wage returns to job tenure and experience," Labour Economics, Elsevier, Elsevier, vol. 15(6), pages 1296-1316, December.
    11. Beblo, Miriam & Wolf, Elke, 2000. "How much does a year off cost? Estimating the wage effects of employment breaks and part-time periods," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 00-69, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    12. Kuhlenkasper, Torben & Kauermann, Göran, 2010. "Duration of maternity leave in Germany: A case study of nonparametric hazard models and penalized splines," Labour Economics, Elsevier, Elsevier, vol. 17(3), pages 466-473, June.
    13. Christian Belzil, 1995. "Unemployment Duration Stigma and Re-employment Earnings," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 28(3), pages 568-85, August.
    14. Marco Francesconi, 2002. "A Joint Dynamic Model of Fertility and Work of Married Women," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 20(2), pages 336-380, Part.
    15. Ruppert,David & Wand,M. P. & Carroll,R. J., 2003. "Semiparametric Regression," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521785167.
    16. Wong, Chi-ming & Kohn, Robert, 1996. "A Bayesian approach to additive semiparametric regression," Journal of Econometrics, Elsevier, Elsevier, vol. 74(2), pages 209-235, October.
    17. Duncan, Otis Dudley, 1974. "Family Investments in Human Capital: Earnings of Women: Comment," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 82(2), pages S109-S110, Part II, .
    18. Bloemen, Hans & Kalwij, Adriaan S., 2001. "Female labor market transitions and the timing of births: a simultaneous analysis of the effects of schooling," Labour Economics, Elsevier, Elsevier, vol. 8(5), pages 593-620, December.
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