Does Endogenous Matching Explain the Family Pay Gap? Evidence from Linked Employer-Employee Data

Lionel Wilner

No 2014-47, Working Papers from Center for Research in Economics and Statistics

Abstract: Once individual unobserved heterogeneity and human capital depreci- ation have proved not to fully account for wage di erences consecutive to parenthood, a remaining explanation (discrimination aside) could be that parents select into low wage rms. This paper tests that hypothesis by resorting to linked employer-employee data and by introducing rm xed e ects in hourly wage equations, on top of worker xed e ects and usual measures of human capital. A motherhood penalty remains despite the presence of two-way high dimensional xed e ects. By contrast, men do not experience any loss due to childbirth, but they do not enjoy any premium either.

Keywords: High dimensional fixed effects; workerfixed effects; firm fixed effects; linked employer-employee data; wages; gender. (search for similar items in EconPapers)
JEL-codes: J12 J13 J16 J31 J62 J71 (search for similar items in EconPapers)
Pages: 40
Date: 2014-02
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Related works:
Journal Article: Worker-firm matching and the parenthood pay gap: Evidence from linked employer-employee data (2016)
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