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Identifying Direct and Indirect Effects. Estimating th Costs of Motherhood Using Matching Estimators

Author

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  • Marianne Simonsen

    (Department of Economics, University of Aarhus)

  • Lars Skipper

    (Institute for Local Government Studies, University of Aarhus)

Abstract

We estimate the effect of motherhood on wages using matching. We distinguish between net and direct effects. The net effect includes the total wage costs, whereas the direct represents the causal effect. Since covariates are likely affected by motherhood, the latter effect is not immediately uncovered. We therefore implement two strategies: First, we confine the analysis to consider sector-specific treatment effects. Second, we impose additive separability on the outcome equation. We find negative net effects that vary little with sector. The direct effect is small and negative in the public sector and insignificant in the private sector.

Suggested Citation

  • Marianne Simonsen & Lars Skipper, 2004. "Identifying Direct and Indirect Effects. Estimating th Costs of Motherhood Using Matching Estimators," Discussion Papers 03-023, Stanford Institute for Economic Policy Research.
    • Handle: RePEc:sip:dpaper:03-023
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    References listed on IDEAS

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    Cited by:

    1. Boockmann, Bernhard & Hagen, Tobias, 2008. "Fixed-term contracts as sorting mechanisms: Evidence from job durations in West Germany," Labour Economics, Elsevier, vol. 15(5), pages 984-1005, October.
    2. Marianne Simonsen & Lars Skipper, 2006. "The costs of motherhood: an analysis using matching estimators," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(7), pages 919-934, November.
    3. Arzhenovskiy, Sergey & Artamonova, Darya, 2007. "Econometric Estimation of the Wage Penalty for the Motherhood," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 7(3), pages 66-79.
    4. Black Dan & Daniel Kermit & Smith Jeffrey, 2005. "College Quality and Wages in the United States," German Economic Review, De Gruyter, vol. 6(3), pages 415-443, August.
    5. Lars Skipper & Marianne Simonsen, 2006. "The costs of motherhood: an analysis using matching estimators," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(7), pages 919-934.

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    More about this item

    Keywords

    Fertility; family gap; wages; matching;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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