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Does Endogenous Matching Explain the Family Pay Gap? Evidence from Linked Employer-Employee Data

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  • Lionel Wilner

    (CREST, INSEE)

Abstract

Once individual unobserved heterogeneity and human capital depreci- ation have proved not to fully account for wage di erences consecutive to parenthood, a remaining explanation (discrimination aside) could be that parents select into low wage rms. This paper tests that hypothesis by resorting to linked employer-employee data and by introducing rm xed e ects in hourly wage equations, on top of worker xed e ects and usual measures of human capital. A motherhood penalty remains despite the presence of two-way high dimensional xed e ects. By contrast, men do not experience any loss due to childbirth, but they do not enjoy any premium either.

Suggested Citation

  • Lionel Wilner, 2014. "Does Endogenous Matching Explain the Family Pay Gap? Evidence from Linked Employer-Employee Data," Working Papers 2014-47, Center for Research in Economics and Statistics.
    • Handle: RePEc:crs:wpaper:2014-47
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Pierre-Jean Messe & Jeremy Tanguy, 2022. "Does gender equality bargaining reduce child penalty? Evidence from France," TEPP Working Paper 2022-19, TEPP.
    2. John Forth & Nikolaos Theodoropoulos, 2023. "Employers and the gender wage gap," IZA World of Labor, Institute of Labor Economics (IZA), pages 511-511, October.
    3. Elise Coudin & Sophie Maillard & Maxime Tô, 2018. "Family, Firms and the Gender Wage Gap in France," Working Papers 2018-09, Center for Research in Economics and Statistics.
    4. Lucifora, Claudio & Meurs, Dominique & Villar, Elena, 2021. "The “mommy track” in the workplace. Evidence from a large French firm," Labour Economics, Elsevier, vol. 72(C).
    5. Isaure Delaporte & Hill Kulu, 2024. "Family Formation and Employment Changes Among Descendants of Immigrants in France: A Multiprocess Analysis," European Journal of Population, Springer;European Association for Population Studies, vol. 40(1), pages 1-77, December.
    6. Lisa Meehan & Gail Pacheco & Thomas Schober, 2023. "Basic Reading and Mathematics Skills and the Labour Market Outcomes of Young People: Evidence from PISA and Linked Administrative Data," The Economic Record, The Economic Society of Australia, vol. 99(327), pages 473-491, December.
    7. Ariane Pailhé & Anne Solaz, 2019. "Is there a wage cost for employees in family‐friendly workplaces? The effect of different employer policies," Gender, Work and Organization, Wiley Blackwell, vol. 26(5), pages 688-721, June.
    8. Bruno Rodrigues & Vincent Vergnat, 2019. "The time and the transitions back to work in France after maternity," Review of Economics of the Household, Springer, vol. 17(3), pages 861-888, September.
    9. Dominique Meurs & Elena Vilar & Claudio Lucifora, 2019. "Having a child? Here is the bill - Parenthood, Earnings and Careers in an Internal Labor," Working Papers hal-04141921, HAL.
    10. Pierre Pora, 2020. "Keep Working and Spend Less? Collective Childcare and Parental Earnings in France," EconomiX Working Papers 2020-29, University of Paris Nanterre, EconomiX.
    11. Rosenbaum, Philip, 2020. "Does early childbearing matter? New approach using Danish register data," Labour Economics, Elsevier, vol. 65(C).
    12. Alessandra Casarico & Salvatore Lattanzio, 2023. "Behind the child penalty: understanding what contributes to the labour market costs of motherhood," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(3), pages 1489-1511, July.
    13. Nieto, Adrián, 2021. "Native-immigrant differences in the effect of children on the gender pay gap," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 654-680.
    14. Tjasa Bartolj & Nika Murovec & Saso Polanec, 2022. "Reported time allocation and emotional exhaustion during COVID-19 pandemic lockdown in Slovenia," The Economic and Labour Relations Review, , vol. 33(1), pages 117-137, March.
    15. Filip Pertold & Sofiana Sinani & Michal Soltes, 2023. "Gender Gap in Reported Childcare Preferences among Parents," CERGE-EI Working Papers wp770, The Center for Economic Research and Graduate Education - Economics Institute, Prague.

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    More about this item

    Keywords

    High dimensional fixed effects; workerfixed effects; firm fixed effects; linked employer-employee data; wages; gender.;
    All these keywords.

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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