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Mind the gap!: The amount of German mothers' care bill and its game theoretical issues

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  • Boll, Christina

Abstract

This paper aims to quantify West German mothers' foregone earnings that stem from intermittent labor market participation due to first birth. As Random Effects regression results with German Socio-Economic Panel Data (West) indicate, at the closure time of their fecundity window mothers realize gross hourly wage cuts up to 25 %, compared to equally educated career women, whereas the total of annualized losses amounts to as far as 201,000 Euro. In the context of a dynamic bargaining model of household decisions, the care bill is suspected of delaying first birth or even preventing women from motherhood if divorce seems sufficiently probable.

Suggested Citation

  • Boll, Christina, 2010. "Mind the gap!: The amount of German mothers' care bill and its game theoretical issues," HWWI Research Papers 1-29, Hamburg Institute of International Economics (HWWI).
  • Handle: RePEc:zbw:hwwirp:1-29
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    References listed on IDEAS

    as
    1. Christina Boll, 2009. "Lohneinbußen durch geburtsbedingte Erwerbsunterbrechungen: fertilitätstheoretische Einordnung, Quantifizierung auf Basis von SOEP-Daten und familienpolitische Implikationen," SOEPpapers on Multidisciplinary Panel Data Research 160, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Steinhardt Max Friedrich, 2011. "The Wage Impact of Immigration in Germany - New Evidence for Skill Groups and Occupations," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-35, June.
    3. Schnepf, Sylke V., 2008. "Inequality of Learning amongst Immigrant Children in Industrialised Countries," IZA Discussion Papers 3337, Institute for the Study of Labor (IZA).
    4. Friso Schlitte & Tiiu Paas, 2008. "Regional Income Inequality and Convergence Processes in the EU-25," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2008(Suppl. 2), pages 29-49.
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    More about this item

    Keywords

    Cooperative bargaining; wage loss; fertility decision;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • 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

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