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Establishment-level wage effects of entering motherhood

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  • Miriam Beblo
  • Stefan Bender
  • Elke Wolf

Abstract

We analyse the wage effects following employment breaks of women who enter motherhood using a novel matching approach where mothers' wages upon return to work are compared to those of their female colleagues within the same establishment. Using an administrative German data set, we apply a fixed-effects propensity score matching based on information two years before birth of the first child. Our results yield new insights into the nature of the wage penalty associated with motherhood: when matching with establishment-specific effects we find that first births reduce women's wages by 19%, whereas ignoring the identifier and matching across all establishments would yield a wage cut of 26%. We therefore conclude that selection into establishments is an important explanatory factor for the family pay gap. Copyright 2009 , Oxford University Press.

Suggested Citation

  • Miriam Beblo & Stefan Bender & Elke Wolf, 2009. "Establishment-level wage effects of entering motherhood," Oxford Economic Papers, Oxford University Press, vol. 61(suppl_1), pages 11-34, April.
  • Handle: RePEc:oup:oxecpp:v:61:y:2009:i:suppl_1:p:i11-i34
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    File URL: http://hdl.handle.net/10.1093/oep/gpn040
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    Cited by:

    1. Bruno Jeandidier & Helen Lim, 2015. "Is there justification for alimony payments? A survey of the empirical literature," Working Papers of BETA 2015-30, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    2. Beatrice Scheubel, 2014. "Does It Pay to Be a Woman?: Labour Demand Effects of Maternity-Related Job Protection and Replacement Incomes," SOEPpapers on Multidisciplinary Panel Data Research 685, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Potrafke, Niklas, 2012. "Unemployment, human capital depreciation and pension benefits: an empirical evaluation of German data," Journal of Pension Economics and Finance, Cambridge University Press, vol. 11(02), pages 223-241, April.
    4. Ortego-Marti, Victor, 2017. "Loss of skill during unemployment and TFP differences across countries," European Economic Review, Elsevier, vol. 100(C), pages 215-235.
    5. Hans Fehr & Daniela Ujhelyiova, 2013. "Fertility, Female Labor Supply, and Family Policy," German Economic Review, Verein für Socialpolitik, vol. 14(2), pages 138-165, May.
    6. Casal, María del Pilar & Barham, Bradford L., 2013. "Motherhood wage penalties and labour market segmentation: Evidence from Argentina," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    7. Chloé Duvivier & Mathieu Narcy, 2015. "The Motherhood Wage Penalty and Its Determinants: A Public–Private Comparison," LABOUR, CEIS, vol. 29(4), pages 415-443, December.
    8. repec:spr:jlabrs:v:51:y:2017:i:1:d:10.1186_s12651-017-0230-8 is not listed on IDEAS
    9. Felfe, Christina, 2012. "The motherhood wage gap: What about job amenities?," Labour Economics, Elsevier, vol. 19(1), pages 59-67.
    10. repec:bla:obuest:v:79:y:2017:i:5:p:689-716 is not listed on IDEAS
    11. Doerr, Annabelle, 2017. "Back to work: The long-term effects of vocational training for female job returners," Freiburg Discussion Papers on Constitutional Economics 17/02, Walter Eucken Institut e.V..
    12. Melanie Arntz & Stephan Dlugosz & Ralf A. Wilke, 2017. "The Sorting of Female Careers after First Birth: A Competing Risks Analysis of Maternity Leave Duration," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 79(5), pages 689-716, October.
    13. Alessandro Cigno, 2014. "Is Marriage as Good as a Contract?," CESifo Economic Studies, CESifo, vol. 60(3), pages 599-612.
    14. Diener, Katharina & Susanne, Götz & Schreyer, Franziska & Stephan, Gesine & Lenhart, Julia & Nisic, Natascha & Stöhr, Julia, 2015. "Rückkehr ins Berufsleben nach familienbedingter Unterbrechung : Befunde der Evaluation der zweiten Förderperiode des ESF-Programms "Perspektive Wiedereinstieg" des Bundesministeriums für Fam," IAB-Forschungsbericht 201507, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    15. Doerr, Annabelle, 2017. "Back to work: The Long-term Effects of Vocational Training for Female Job Returners," Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168213, Verein für Socialpolitik / German Economic Association.

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