Parental Leave Duration and Wages: A Structural Approach

Laurent Lequien ()
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Laurent Lequien: CREST

No 2012-04, Working Papers from Center for Research in Economics and Statistics

Abstract: We investigate the existence of causal mechanisms from parental leave duration to subsequent wages. Our instrumental variable is a French reform giving financial incentives to take a parental leave. Two longitudinal datasets provide us with information on wages and familial background from 1976 to 2005. In our context, panel data estimations potentially suffer from unobserved heterogeneity, endogeneity and selection. We implement an innovative procedure proposed by Semykina and Wooldridge (2010) to take into account these three problems simultaneously. We find that parental leave duration has a significant and negative causal impact on later wages

Keywords: Parental leave duration; wages; selection; endogeneity; panel data (search for similar items in EconPapers)
JEL-codes: C33 J31 J68 (search for similar items in EconPapers)
Pages: 32
Date: 2012-02
New Economics Papers: this item is included in nep-lab and nep-lma
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Citations: View citations in EconPapers (3)

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