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Panel estimates of the wage penalty for maternal leave

Author

Listed:
  • Bianca Buligescu
  • Denis de Crombrugghe
  • Gülçin Menteşoğlu
  • Raymond Montizaan

Abstract

The focus of this paper is the size of the wage penalty due to maternal leave incurred by working mothers in Germany. Existing estimates suggest large penalties with little rebound over time. We apply recent panel data methods designed to address problems of sample selectivity, unobserved heterogeneity and endogeneity to German Socio-Economic Panel (GSOEP) data. Heckman's classic treatment of selectivity is extended to deal with both heterogeneity and simultaneity. In order to exploit the actual working hours data available in GSOEP, we develop the case of a censored tobit participation model. We also investigate the sensitivity of the results to the choice of method. Our estimates imply a maternal leave wage penalty of 10 to 14% which is less persistent over time than other studies suggest. Five years after the return to work maternal wages have caught up. Copyright 2009 Oxford University Press 2008 All rights reserved, Oxford University Press.

Suggested Citation

  • Bianca Buligescu & Denis de Crombrugghe & Gülçin Menteşoğlu & Raymond Montizaan, 2009. "Panel estimates of the wage penalty for maternal leave," Oxford Economic Papers, Oxford University Press, vol. 61(suppl_1), pages 35-55, April.
  • Handle: RePEc:oup:oxecpp:v:61:y:2009:i:suppl_1:p:i35-i55
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    File URL: http://hdl.handle.net/10.1093/oep/gpn042
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    Citations

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    Cited by:

    1. Lionel Wilner, 2016. "Worker-firm matching and the parenthood pay gap: Evidence from linked employer-employee data," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(4), pages 991-1023, October.
    2. Michelle Budig & Irene Böckmann & Joya Misra, 2010. "The Motherhood Penalty in Cross-National Perspective: The Importance of Work-Family Policies and Cultural Attitudes," LIS Working papers 542, LIS Cross-National Data Center in Luxembourg.
    3. Anna Lovasz & Ewa Cukrowska, 2014. "Are children driving the gender wage gap? Comparative evidence from Poland and Hungary," Budapest Working Papers on the Labour Market 1404, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
    4. Ewa Cukrowska-Torzewska & Anna Lovasz, 2016. "Are children driving the gender wage gap?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 24(2), pages 259-297, April.
    5. Elke Wolf, 2014. "The German Part-Time Wage Gap: Bad News for Men," SOEPpapers on Multidisciplinary Panel Data Research 663, DIW Berlin, The German Socio-Economic Panel (SOEP).
    6. Erik Lundquist & Hanna Eklööf, 2017. "The Motherhood Wage Penalty: A Varieties of Capitalism Approach," LIS Working papers 710, LIS Cross-National Data Center in Luxembourg.
    7. Fernández-Kranz, Daniel & Rodríguez-Planas, Núria, 2011. "The part-time pay penalty in a segmented labor market," Labour Economics, Elsevier, vol. 18(5), pages 591-606, October.
    8. Fitzenberger, Bernd & Sommerfeld, Katrin & Steffes, Susanne, 2013. "Causal effects on employment after first birth — A dynamic treatment approach," Labour Economics, Elsevier, vol. 25(C), pages 49-62.
    9. Guertzgen, Nicole & Hank, Karsten, 2014. "Maternity leave and mothers' long-term sickness absence: Evidence from Germany," ZEW Discussion Papers 14-109, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    10. Nizalova, Olena Y. & Sliusarenko, Tamara & Shpak, Solomiya, 2016. "The motherhood wage penalty in times of transition," Journal of Comparative Economics, Elsevier, vol. 44(1), pages 56-75.
    11. Laurent Lequien, 2012. "Parental Leave Duration and Wages: A Structural Approach," Working Papers 2012-04, Center for Research in Economics and Statistics.
    12. 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.
    13. repec:spr:jlabrs:v:51:y:2017:i:1:d:10.1186_s12651-017-0230-8 is not listed on IDEAS
    14. Adriaan Kalwij, 2015. "Two tests for strict exogeneity in a correlated random effects panel data Tobit model," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 69(2), pages 115-125, May.
    15. Sieds, 2011. "Complete Volume LXV n.1 2011," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - Italian Review of Economics, Demography and Statistics, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 65(1), pages 1-181.
    16. Yusuf Emre Akgunduz & Janneke Plantenga, 2013. "Labour market effects of parental leave in Europe," Cambridge Journal of Economics, Oxford University Press, vol. 37(4), pages 845-862.
    17. 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.
    18. Ewa Cukrowska-Torzewska & Anna Lovasz, 2017. "The Impact of Parenthood on the Gender Wage Gap – a Comparative Analysis of 26 European Countries," Working Papers 2017-25, Faculty of Economic Sciences, University of Warsaw.
    19. Wolf, Elke, 2013. "The German part-time wage gap: bad news for men," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79969, Verein für Socialpolitik / German Economic Association.

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