Work and Wage Dynamics around Childbirth

Mette Ejrnæs and Astrid Kunze

No 3710, CESifo Working Paper Series from CESifo

Abstract: This study investigates how the first childbirth affects the wage processes of highly attached women. We estimate a flexible fixed effects wage regression model extended with post-birth fixed effects by the control function approach. Register data on West Germany are used and we exploit the expansionary family policy during the late 1980s and 1990s for identification. On the return to work after the birth, mothers’ wages drop by 3 to 5.7 per cent per year of leave. We find negative selection back to full-time work after birth. We discuss policy implications regarding statistical discrimination and results on family gap.

Keywords: wages; parental leave; human capital; return to work; non-random selection (search for similar items in EconPapers)
JEL-codes: C23 J18 J22 J24 J31 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Related works:
Journal Article: Work and Wage Dynamics around Childbirth (2013)
Working Paper: Work and Wage Dynamics around Childbirth (2012)
Working Paper: Work and Wage Dynamics around Childbirth (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_3710

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