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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
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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.
    3. C. Katharina Spiess & Jan Ondrich & Qing Yang, 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.
    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. 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.
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    7. 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.
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    9. 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.
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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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