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Establishment-level wage effects of entering motherhood

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  • Miriam Beblo
  • Stefan Bender
  • Elke Wolf

Abstract

We analyse the wage effects following employment breaks of women who enter motherhood using a novel matching approach where mothers' wages upon return to work are compared to those of their female colleagues within the same establishment. Using an administrative German data set, we apply a fixed-effects propensity score matching based on information two years before birth of the first child. Our results yield new insights into the nature of the wage penalty associated with motherhood: when matching with establishment-specific effects we find that first births reduce women's wages by 19%, whereas ignoring the identifier and matching across all establishments would yield a wage cut of 26%. We therefore conclude that selection into establishments is an important explanatory factor for the family pay gap. Copyright 2009 , Oxford University Press.

Suggested Citation

  • Miriam Beblo & Stefan Bender & Elke Wolf, 2009. "Establishment-level wage effects of entering motherhood," Oxford Economic Papers, Oxford University Press, vol. 61(suppl_1), pages 11-34, April.
    • Handle: RePEc:oup:oxecpp:v:61:y:2009:i:suppl_1:p:i11-i34
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    Cited by:

    1. Bruno Jeandidier & Helen Lim, 2015. "Is there justification for alimony payments? A survey of the empirical literature," Working Papers hal-02105214, HAL.
    2. Lionel Wilner, 2016. "Worker-firm matching and the parenthood pay gap: Evidence from linked employer-employee data," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(4), pages 991-1023, October.
    3. Drasch, Katrin & Abraham, Martin, 2019. "Compensating wage differentials and the labor market re-entry of mothers: Evidence from a factorial survey," SocArXiv vap6x, Center for Open Science.
    4. Alena Bičáková, 2016. "Gender unemployment gaps in the EU: blame the family," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-31, December.
    5. Beatrice Scheubel, 2014. "Does It Pay to Be a Woman?: Labour Demand Effects of Maternity-Related Job Protection and Replacement Incomes," SOEPpapers on Multidisciplinary Panel Data Research 685, DIW Berlin, The German Socio-Economic Panel (SOEP).
    6. Doerr, Annabelle, 2022. "Vocational training for female job returners - Effects on employment, earnings and job quality," Labour Economics, Elsevier, vol. 75(C).
    7. Chloé Duvivier & Mathieu Narcy, 2015. "The Motherhood Wage Penalty and Its Determinants: A Public–Private Comparison," LABOUR, CEIS, vol. 29(4), pages 415-443, December.
    8. Potrafke, Niklas, 2012. "Unemployment, human capital depreciation and pension benefits: an empirical evaluation of German data," Journal of Pension Economics and Finance, Cambridge University Press, vol. 11(2), pages 223-241, April.
    9. Ortego-Marti, Victor, 2017. "Loss of skill during unemployment and TFP differences across countries," European Economic Review, Elsevier, vol. 100(C), pages 215-235.
    10. Carole Bonnet & Benoît Rapoport, 2020. "Is There a Child Penalty in Pensions? The Role of Caregiver Credits in the French Retirement System," European Journal of Population, Springer;European Association for Population Studies, vol. 36(1), pages 27-52, March.
    11. Hans Fehr & Daniela Ujhelyiova, 2013. "Fertility, Female Labor Supply, and Family Policy," German Economic Review, Verein für Socialpolitik, vol. 14(2), pages 138-165, May.
    12. Stephan Humpert & Christian Pfeifer, 2013. "Explaining age and gender differences in employment rates: a labor supply-side perspective [Eine Erklärung alters- und geschlechtsspezifischer Unterschiede in den Beschäftigungsquoten: Die Sicht de," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 46(1), pages 1-17, March.
    13. Stuth, Stefan, 2019. "Führt Elternschaft in prekäre Beschäftigung?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 46(6), pages 44-57.
    14. Casal, María del Pilar & Barham, Bradford L., 2013. "Motherhood wage penalties and labour market segmentation: Evidence from Argentina," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    15. Astrid Kunze, 2017. "Types of absence from work and wages of young workers with apprenticeship training," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 51(1), pages 1-14, December.
    16. Felfe, Christina, 2012. "The motherhood wage gap: What about job amenities?," Labour Economics, Elsevier, vol. 19(1), pages 59-67.
    17. Melanie Arntz & Stephan Dlugosz & Ralf A. Wilke, 2017. "The Sorting of Female Careers after First Birth: A Competing Risks Analysis of Maternity Leave Duration," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 79(5), pages 689-716, October.
    18. Doerr, Annabelle, 2017. "Back to work: The Long-term Effects of Vocational Training for Female Job Returners," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168213, Verein für Socialpolitik / German Economic Association.
    19. Alessandro Cigno, 2014. "Is Marriage as Good as a Contract?," CESifo Economic Studies, CESifo Group, vol. 60(3), pages 599-612.
    20. Diener, Katharina & Götz, Susanne & Schreyer, Franziska & Stephan, Gesine, 2015. "Mütter und pflegende Frauen: Modellprogramm unterstützt die Berufsrückkehr nach langer Unterbrechung (Mothers and women with care responsibilities: Pilot Program supports re-entry after a long family-," IAB-Kurzbericht 201514, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    21. Diener, Katharina & Susanne, Götz & Schreyer, Franziska & Stephan, Gesine & Lenhart, Julia & Nisic, Natascha & Stöhr, Julia, 2015. "Rückkehr ins Berufsleben nach familienbedingter Unterbrechung : Befunde der Evaluation der zweiten Förderperiode des ESF-Programms "Perspektive Wiedereinstieg" des Bundesministeriums für Fam," IAB-Forschungsbericht 201507, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    22. Acheson Jean & Collins Michael, 2021. "The gender pay gap in Revenue," Administration, Sciendo, vol. 69(3), pages 45-75, August.
    23. Buschmann, Benjamin & Gärtner, Debora & Grimm, Veronika & Osiander, Christopher & Stephan, Gesine, 2018. "Wann würden Frauen für Tarifkommissionen kandidieren? Befunde aus einem faktoriellen Survey [When would women put themselves up for election on wage negotiation commissions? Evidence from a factori," Industrielle Beziehungen. Zeitschrift für Arbeit, Organisation und Management, Verlag Barbara Budrich, vol. 25(3), pages 320-342.
    24. Doerr, Annabelle, 2022. "Vocational Training for Female Job Returners - Effects on Employment, Earnings and Job Quality," Working papers 2022/02, Faculty of Business and Economics - University of Basel.

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