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

Lionel Wilner

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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)
Date: 2016-04-29
Note: View the original document on HAL open archive server: https://hal.science/hal-04799385v1
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Published in Journal of Population Economics, 2016, 29 (4), pp.991-1023. ⟨10.1007/s00148-016-0597-9⟩

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Journal Article: Worker-firm matching and the parenthood pay gap: Evidence from linked employer-employee data (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04799385

DOI: 10.1007/s00148-016-0597-9

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