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Work and Wage Dynamics around Childbirth

Mette Ejrnæs and Astrid Kunze ()

No 6066, IZA Discussion Papers from Institute of Labor Economics (IZA)

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: non-random selection; return to work; human capital; parental leave; wages (search for similar items in EconPapers)
JEL-codes: C23 J18 J22 J24 J31 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2011-10
New Economics Papers: this item is included in nep-hrm, nep-lab and nep-lma
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Published in: Scandinavian Journal of Economics, 2013, 115 (3), 856-877

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http://ftp.iza.org/dp6066.pdf (application/pdf)

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 (2012) Downloads
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