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International Differences in the Family Gap in Pay: The Role of Labor Market Institutions

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  • Dupuy, Arnaud

    () (University of Luxembourg)

  • Fernández-Kranz, Daniel

    () (IE Business School, Madrid)

Abstract

Using microdata for 35 countries over the period 1985-1994-2002 we find that labor market institutions traditionally associated to more compressed wage structures are associated to a higher family gap. Our results indicate that these policies reduce the price effect of having children but aggravate the human capital loss due to motherhood. We also find evidence that policies that help women continue in the same job after childbirth decrease the family gap. Of all the countries we study, mothers in Southern Europe suffer the biggest family gap and our analysis indicates that this is due to the bad combination of labor market policies in these countries. Our results are robust to specification changes and indicate that the main reason mothers lag behind other women in terms of earnings is the loss of accumulated job market experience caused by career breaks around childbirth.

Suggested Citation

  • Dupuy, Arnaud & Fernández-Kranz, Daniel, 2007. "International Differences in the Family Gap in Pay: The Role of Labor Market Institutions," IZA Discussion Papers 2719, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp2719
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    Cited by:

    1. Helmut Rainer & Geethanjali Selvaretnam & David Ulph, 2011. "Assisted reproductive technologies (ART) in a model of fertility choice," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(3), pages 1101-1132, July.
    2. Luis Gamboa & Blanca Zuluaga, 2013. "Is There a Motherhood Penalty? Decomposing the Family Wage Gap in Colombia," Journal of Family and Economic Issues, Springer, vol. 34(4), pages 421-434, December.
    3. Alena Bicakova, 2010. "Gender Unemployment Gaps: Evidence from the New EU Member States," CERGE-EI Working Papers wp410, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    4. Kunze, Astrid, 2014. "The family gap in career progression," Discussion Paper Series in Economics 29/2014, Norwegian School of Economics, Department of Economics.
    5. Jeroen Horemans, 2016. "The part-time poverty gap across Europe: How institutions affect the way part-time and full-time workers avoid poverty differently," Working Papers 1603, Herman Deleeck Centre for Social Policy, University of Antwerp.
    6. repec:ilo:ilowps:487376 is not listed on IDEAS
    7. 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.
    8. Salverda, Wiemer & Checchi, Daniele, 2014. "Labour-Market Institutions and the Dispersion of Wage Earnings," IZA Discussion Papers 8220, Institute for the Study of Labor (IZA).
    9. Isabell Koske & Jean-Marc Fournier & Isabelle Wanner, 2012. "Less Income Inequality and More Growth – Are They Compatible? Part 2. The Distribution of Labour Income," OECD Economics Department Working Papers 925, OECD Publishing.

    More about this item

    Keywords

    institutions; family gap;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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