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Work and Wage Dynamics around Childbirth

  • Ejrnæs, Mette


    (University of Copenhagen)

  • Kunze, Astrid


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

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.

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Paper provided by Department of Economics, Norwegian School of Economics in its series Discussion Paper Series in Economics with number 4/2012.

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Length: 32 pages
Date of creation: 29 Feb 2012
Date of revision:
Handle: RePEc:hhs:nhheco:2012_004
Contact details of provider: Postal: NHH, Department of Economics, Helleveien 30, N-5045 Bergen, Norway
Phone: +47 55 959 277
Fax: 5595 9100
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  1. 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).
  2. 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.
  3. Helena Skyt Nielsen & Marianne Simonsen & Mette Verner, . "Does the Gap in Family-Friendly Policies Drive the Family Gap?," Economics Working Papers 2003-1, School of Economics and Management, University of Aarhus.
  4. Gupta, N.D. & Smith, N., 2000. "Children and Career Interruptions: the Family Gap in Denmark," Papers 00-03, Centre for Labour Market and Social Research, Danmark-.
  5. Richard Blundell & Monica Costa Dias, 2008. "Alternative approaches to evaluation in empirical microeconomics," CeMMAP working papers CWP26/08, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  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, vol. 9(3), pages 247-66, August.
  7. 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.
  8. repec:oup:qjecon:v:113:y:1998:i:1:p:285-317 is not listed on IDEAS
  9. 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.
  10. Mette Ejrnæs & Astrid Kunze, 2004. "Wage Dips and Drops around First Birth," CAM Working Papers 2004-01, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
  11. 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.
  12. Lundberg, Shelly & Rose, Elaina, 2000. "Parenthood and the earnings of married men and women," Labour Economics, Elsevier, vol. 7(6), pages 689-710, November.
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