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

Christina Boll

No 1-29, HWWI Research Papers from Hamburg Institute of International Economics (HWWI)

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.

Keywords: Cooperative bargaining; wage loss; fertility decision (search for similar items in EconPapers)
JEL-codes: C33 J13 J31 (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:hwwirp:1-29

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