IDEAS home Printed from https://ideas.repec.org/p/hhs/nhheco/2012_004.html
   My bibliography  Save this paper

Work and Wage Dynamics around Childbirth

Author

Listed:
  • Ejrnæs, Mette

    () (University of Copenhagen)

  • Kunze, Astrid

    () (Dept. of Economics, Norwegian School of Economics and Business Administration)

Abstract

This study investigates how the first childbirth affects the wage processes of women who are well-established in the labour market. We estimate a flexible …fixed-effects wage regression model extended by post-childbirth…fixed effects. We use register data on West Germany and exploit the expansionary family policy during the late 1980s and 1990s for identification. On their return to work after childbirth, mothers’wages drop by 3 to 5.7 per cent per year of leave. We find negative selection back to full-time work after childbirth. We discuss policy implications regarding statistical discrimination and results concerning the family gap.

Suggested Citation

  • Ejrnæs, Mette & Kunze, Astrid, 2012. "Work and Wage Dynamics around Childbirth," Discussion Paper Series in Economics 4/2012, Norwegian School of Economics, Department of Economics.
    • Handle: RePEc:hhs:nhheco:2012_004
    as

    Download full text from publisher

    File URL: http://www.nhh.no/Admin/Public/DWSDownload.aspx?File=%2fFiles%2fFiler%2finstitutter%2fsam%2fDiscussion+papers%2f2012%2f04.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. Deborah J. Anderson & Melissa Binder & Kate Krause, 2002. "The Motherhood Wage Penalty: Which Mothers Pay It and Why?," American Economic Review, American Economic Association, vol. 92(2), pages 354-358, May.
    3. repec:spr:portec:v:1:y:2002:i:2:d:10.1007_s10258-002-0010-3 is not listed on IDEAS
    4. Kunze, Astrid & Ejrnæs, Mette, 2004. "Wage Dips and Drops around First Birth," IZA Discussion Papers 1011, Institute for the Study of Labor (IZA).
    5. Richard Blundell & Monica Costa Dias, 2009. "Alternative Approaches to Evaluation in Empirical Microeconomics," Journal of Human Resources, University of Wisconsin Press, vol. 44(3).
    6. Ondrich, Jan & Spiess, C Katharina & Yang, Qing, 1996. "Barefoot and in a German Kitchen: Federal Parental Leave and Benefit Policy and the Return to Work after Childbirth in Germany," Journal of Population Economics, Springer;European Society for Population Economics, vol. 9(3), pages 247-266, August.
    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, vol. 1(1), pages 77-110, January.
    8. Christopher J. Ruhm, 1998. "The Economic Consequences of Parental Leave Mandates: Lessons from Europe," The Quarterly Journal of Economics, Oxford University Press, vol. 113(1), pages 285-317.
    9. Schönberg, Uta & Ludsteck, Johannes, 2007. "Maternity Leave Legislation, Female Labor Supply, and the Family Wage Gap," IZA Discussion Papers 2699, Institute for the Study of Labor (IZA).
    10. Burgess, Simon & Gregg, Paul & Propper, Carol & Washbrook, Elizabeth, 2008. "Maternity rights and mothers' return to work," Labour Economics, Elsevier, vol. 15(2), pages 168-201, April.
    11. Helena Skyt Nielsen & Marianne Simonsen & Mette Verner, 2004. "Does the Gap in Family-friendly Policies Drive the Family Gap?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(4), pages 721-744, December.
    12. Davies, Rhys & Pierre, Gaelle, 2005. "The family gap in pay in Europe: a cross-country study," Labour Economics, Elsevier, vol. 12(4), pages 469-486, August.
    13. Lundberg, Shelly & Rose, Elaina, 2000. "Parenthood and the earnings of married men and women," Labour Economics, Elsevier, vol. 7(6), pages 689-710, November.
    14. Rafael Lalive & Josef Zweimüller, 2009. "How Does Parental Leave Affect Fertility and Return to Work? Evidence from Two Natural Experiments," The Quarterly Journal of Economics, Oxford University Press, vol. 124(3), pages 1363-1402.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Frühwirth-Schnatter, Sylvia & Pamminger, Christoph & Weber, Andrea & Winter-Ebmer, Rudolf, 2014. "When Is The Best Time To Give Birth?," Economics Series 308, Institute for Advanced Studies.
    2. repec:ilo:ilowps:487376 is not listed on IDEAS
    3. David Canning & Declan French & Michael Moore, 2016. "The Economics of Fertility Timing: An Euler Equation Approach," CHaRMS Working Papers 16-03, Centre for HeAlth Research at the Management School (CHaRMS).
    4. Bicakova, Alena & Kaliskova, Klara, 2016. "Career Breaks after Childbirth: The Impact of Family Leave Reforms in the Czech Republic," IZA Discussion Papers 10149, Institute for the Study of Labor (IZA).
    5. Kunze, Astrid & Miller, Amalia, 2014. "Women Helping Women? Evidence from Private Sector Data on Workplace Hierarchies," IZA Discussion Papers 8725, Institute for the Study of Labor (IZA).
    6. Lia Pacelli & Silvia Pasqua & Claudia Villosio, 2013. "Labor Market Penalties for Mothers in Italy," Journal of Labor Research, Springer, vol. 34(4), pages 408-432, December.
    7. Kaiser, Lutz C., 2014. "The Gender-Career Estimation Gap," IZA Discussion Papers 8185, Institute for the Study of Labor (IZA).
    8. Kunze, Astrid, 2014. "The family gap in career progression," Discussion Paper Series in Economics 29/2014, Norwegian School of Economics, Department of Economics.
    9. Frühwirth-Schnatter, Sylvia & Pamminger, Christoph & Weber, Andrea & Winter-Ebmer, Rudolf, 2014. "When Is The Best Time To Give Birth - Career Effects Of Early Birth Decisions," CEPR Discussion Papers 10132, C.E.P.R. Discussion Papers.
    10. Xiaoyan Chen Youderian, 2014. "The motherhood wage penalty and non-working women," Economics Bulletin, AccessEcon, vol. 34(2), pages 757-765.
    11. 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.
    12. Nele E. Franz, 2014. "Maternity Leave and Its Consequences for Subsequent Careers in Germany," SOEPpapers on Multidisciplinary Panel Data Research 722, DIW Berlin, The German Socio-Economic Panel (SOEP).
    13. Uta Schönberg & Johannes Ludsteck, 2014. "Expansions in Maternity Leave Coverage and Mothers' Labor Market Outcomes after Childbirth," Journal of Labor Economics, University of Chicago Press, vol. 32(3), pages 469-505.
    14. Grund, Christian, 2015. "Gender pay gaps among highly educated professionals — Compensation components do matter," Labour Economics, Elsevier, vol. 34(C), pages 118-126.
    15. Astrid Kunze, 2016. "Parental leave and maternal labor supply," IZA World of Labor, Institute for the Study of Labor (IZA), pages 279-279, July.
    16. Marit Rønsen & Ragni Hege Kitterød, 2012. "Entry into work following childbirth among mothers in Norway. Recent trends and variation," Discussion Papers 702, Statistics Norway, Research Department.
    17. repec:spr:jlabrs:v:51:y:2017:i:1:d:10.1186_s12651-017-0230-8 is not listed on IDEAS
    18. Lutz Kaiser, 2014. "The Gender-Career Estimation Gap," Proceedings of International Academic Conferences 0300349, International Institute of Social and Economic Sciences.
    19. repec:spr:jlabrs:v:50:y:2017:i:1:d:10.1007_s12651-017-0226-4 is not listed on IDEAS
    20. Franz, Nele, 2014. "Maternity leave and its consequences for subsequent careers in Germany," CIW Discussion Papers 1/2014, University of Münster, Center for Interdisciplinary Economics (CIW).
    21. Joseph, Olivier & Pailhé, Ariane & Recotillet, Isabelle & Solaz, Anne, 2013. "The economic impact of taking short parental leave: Evaluation of a French reform," Labour Economics, Elsevier, vol. 25(C), pages 63-75.
    22. Grimshaw, Damian. & Rubery, Jill., 2015. "The motherhood pay gap : a review of the issues, theory and international evidence," ILO Working Papers 994873763402676, International Labour Organization.

    More about this item

    Keywords

    Wages; parental leave; human capital; control function.;

    JEL classification:

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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:nhheco:2012_004. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dagny Hanne Kristiansen). General contact details of provider: http://edirc.repec.org/data/sonhhno.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.