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

Arnaud Dupuy () and Fernandéz-Kranz Daniel
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Fernandéz-Kranz Daniel: ROA rm

No 5, Research Memoranda from Maastricht : ROA, Research Centre for Education and the Labour Market

Abstract: Using microdata for 35 countries over the period 1985-1994-2002 we find thatlabor market institutions traditionally associated to more compressed wagestructures are associated to a higher family gap. Our results indicate that thesepolicies reduce the price effect of having children but aggravate the humancapital loss due to motherhood. We also find evidence that policies that helpwomen continue in the same job after childbirth decrease the family gap. Of allthe countries we study, mothers in Southern Europe suffer the biggest familygap and our analysis indicates that this is due to the bad combination of labormarket policies in these countries. Our results are robust to specificationchanges and indicate that the main reason mothers lag behind other women interms of earnings is the loss of accumulated job market experience caused bycareer breaks around childbirth.

Keywords: education, training and the labour market (search for similar items in EconPapers)
Date: 2007
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Related works:
Journal Article: International differences in the family gap in pay: the role of labour market institutions (2011)
Working Paper: International Differences in the Family Gap in Pay: The Role of Labor Market Institutions (2007)
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