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The influence of quantity and age of children on working women’ salaries

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  • Kadreva, Olga

    () (Higher School of Economics, Moscow, Russia)

Abstract

This paper is devoted to the analysis of influence of number and age of children on salaries of working women. Unlike most of the research concerning wages, the approach applied allows considering both an unobserved heterogeneity of Russian women and the sample selection bias. The mentioned approach is based on two-stage Heckman procedure within the framework of fixed effects model. Russian Longitudinal Monitoring survey (RLMS–HSE) data of 18–22 rounds is used. On the first step tobit-model for each round is estimated and residuals are derived. On the second step the model for salary is estimated, taking into account residuals from the first step. Various reference variables are used in the models: education level, qualification level and social-demographic characteristics of women. As a result, the revealed influence of children on salaries of working women is considerably higher in models with consideration of sample selection bias.

Suggested Citation

  • Kadreva, Olga, 2016. "The influence of quantity and age of children on working women’ salaries," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 41, pages 62-77.
  • Handle: RePEc:ris:apltrx:0285
    as

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    File URL: http://pe.cemi.rssi.ru/pe_2016_41_062-077.pdf
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    References listed on IDEAS

    as
    1. Lukiyanova, A., 2011. "Wage Inequality in Russian Economic Transition (1991–2008): Stylized Facts and Explanations," Journal of the New Economic Association, New Economic Association, issue 12, pages 124-147.
    2. Datta Gupta, Nabanita & Smith, Nina, 2002. "Children and Career Interruptions: The Family Gap in Denmark," Economica, London School of Economics and Political Science, vol. 69(276), pages 609-629, November.
    3. Mincer, Jacob & Polachek, Solomon, 1974. "Family Investment in Human Capital: Earnings of Women," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 76-108, Part II, .
    4. Arzhenovskiy, Sergey & Artamonova, Darya, 2007. "Econometric Estimation of the Wage Penalty for the Motherhood," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 7(3), pages 66-79.
    5. Reuben Gronau, 1974. "The Effect of Children on the Housewife's Value of Time," NBER Chapters,in: Economics of the Family: Marriage, Children, and Human Capital, pages 457-490 National Bureau of Economic Research, Inc.
    6. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    7. Wooldridge, Jeffrey M., 1995. "Selection corrections for panel data models under conditional mean independence assumptions," Journal of Econometrics, Elsevier, vol. 68(1), pages 115-132, July.
    8. Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 66, pages 281-281.
    9. Jacob Mincer, 1962. "Labor Force Participation of Married Women: A Study of Labor Supply," NBER Chapters,in: Aspects of Labor Economics, pages 63-105 National Bureau of Economic Research, Inc.
    10. Christian Dustmann & María Engracia Rochina-Barrachina, 2007. "Selection correction in panel data models: An application to the estimation of females' wage equations," Econometrics Journal, Royal Economic Society, vol. 10(2), pages 263-293, July.
    11. Deborah J. Anderson & Melissa Binder & Kate Krause, 2003. "The Motherhood Wage Penalty Revisited: Experience, Heterogeneity, Work Effort, and Work-Schedule Flexibility," ILR Review, Cornell University, ILR School, vol. 56(2), pages 273-294, January.
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    More about this item

    Keywords

    salary; motherhood; sample selection bias; fixed effects;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • 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

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