Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/58748 
Year of Publication: 
2011
Series/Report no.: 
IZA Discussion Papers No. 6066
Publisher: 
Institute for the Study of Labor (IZA), Bonn
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
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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