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Title:Work and wage dynamics around childbirth PDF Logo
Authors:Ejrnæs, Mette
Kunze, Astrid
Issue Date:2012
Series/Report no.:CESifo working paper: Public Finance 3710
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.
Subjects:wages
parental leave
human capital
return to work
non-random selection
JEL:C23
J18
J22
J24
J31
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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