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Work and Wage Dynamics around Childbirth

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  • Mette Ejrnæs
  • Astrid Kunze

Abstract

This study investigates how the first childbirth affects the wage processes of highly attached women. We estimate a flexible fixed effects wage regression model extended with post-birth fixed effects by the control function approach. Register data on West Germany are used and we exploit the expansionary family policy during the late 1980s and 1990s for identification. On the return to work after the birth, mothers’ wages drop by 3 to 5.7 per cent per year of leave. We find negative selection back to full-time work after birth. We discuss policy implications regarding statistical discrimination and results on family gap.

Suggested Citation

  • Mette Ejrnæs & Astrid Kunze, 2012. "Work and Wage Dynamics around Childbirth," CESifo Working Paper Series 3710, CESifo.
    • Handle: RePEc:ces:ceswps:_3710
    as

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    References listed on IDEAS

    as
    1. Richard Blundell & Monica Costa Dias, 2009. "Alternative Approaches to Evaluation in Empirical Microeconomics," Journal of Human Resources, University of Wisconsin Press, vol. 44(3).
    2. Mette Ejrnæs & Astrid Kunze, 2002. "Wage dips and drops around the first birth," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 C2-4, International Conferences on Panel Data.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    wages; parental leave; human capital; return to work; non-random selection;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • 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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