Worker-firm matching and the parenthood pay gap: Evidence from linked employer-employee data

Lionel Wilner

Journal of Population Economics, 2016, vol. 29, issue 4, No 2, 1023 pages

Abstract: Abstract The parenthood pay gap is not fully explained by human capital depreciation and unobserved heterogeneity. Endogenous worker-firm matching could also account for such wage differences. This hypothesis is tested thanks to linked employer-employee data on the French private sector between 1995 and 2011. Childbirth penalties are estimated for women and for men from hourly wage equations including firm- and worker-fixed effects on top of usual measures of human capital. Though worker-firm matching explains none of the motherhood wage penalty, it plays a role in the case of fathers who do not experience any wage loss after childbirth, but do not enjoy any premium either; there is evidence of an erosion of this premium since the end of the 1990s. In a counterfactual where women do not incur any penalty after childbirth, the gender gap still amounts to 2/3 of the one that currently prevails.

Keywords: High dimensional fixed effects; Worker-firm matching; Parenthood pay gap; Gender inequalities; Linked employer-employee data (search for similar items in EconPapers)
JEL-codes: J13 J16 J31 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (24)

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Working Paper: Does Endogenous Matching Explain the Family Pay Gap? Evidence from Linked Employer-Employee Data (2015)
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DOI: 10.1007/s00148-016-0597-9

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