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Work and Wage Dynamics around Childbirth

Author

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  • 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
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    References listed on IDEAS

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    More about this item

    Keywords

    Wages; parental leave; human capital; control function.;
    All these keywords.

    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

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