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Work and Wage Dynamics around Childbirth

Mette Ejrnæs and Astrid Kunze ()

No 4/2012, Discussion Paper Series in Economics from Norwegian School of Economics, Department of Economics

Abstract: This study investigates how the first childbirth affects the wage processes of women who are well-established in the labour market. We estimate a flexible …fixed-effects wage regression model extended by post-childbirth…fixed effects. We use register data on West Germany and exploit the expansionary family policy during the late 1980s and 1990s for identification. On their return to work after childbirth, mothers’wages drop by 3 to 5.7 per cent per year of leave. We find negative selection back to full-time work after childbirth. We discuss policy implications regarding statistical discrimination and results concerning the family gap.

Keywords: Wages; parental leave; human capital; control function. (search for similar items in EconPapers)
JEL-codes: C23 J24 J31 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2012-02-29
New Economics Papers: this item is included in nep-hrm, nep-lab and nep-lma
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Related works:
Journal Article: Work and Wage Dynamics around Childbirth (2013) Downloads
Working Paper: Work and Wage Dynamics around Childbirth (2012) Downloads
Working Paper: Work and Wage Dynamics around Childbirth (2011) Downloads
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