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Worker-firm matching and the parenthood pay gap: Evidence from linked employer-employee data

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  • Lionel Wilner

    (CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - CNRS - Centre National de la Recherche Scientifique)

Abstract

The parenthood pay gap is not fully explained by human capital depreciation and unobserved heterogeneity. Endogenous worker-firm matching could also account for such wage differences. This hypothesis is tested thanks to linked employer-employee data on the French private sector between 1995 and 2011. Childbirth penalties are estimated for women and for men from hourly wage equations including firm-and worker-fixed effects on top of usual measures of human capital. Though worker-firm matching explains none of the motherhood wage penalty, it plays a role in the case of fathers who do not experience any wage loss after childbirth, but do not enjoy any premium either; there is evidence of an erosion of this premium since the end of the 1990s. In a counterfactual where women do not incur any penalty after childbirth, the gender gap still amounts to 2/3 of the one that currently prevails.

Suggested Citation

  • Lionel Wilner, 2016. "Worker-firm matching and the parenthood pay gap: Evidence from linked employer-employee data," Post-Print hal-04799385, HAL.
    • Handle: RePEc:hal:journl:hal-04799385
    DOI: 10.1007/s00148-016-0597-9
    Note: View the original document on HAL open archive server: https://hal.science/hal-04799385v1
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    References listed on IDEAS

    as
    1. Felfe, Christina, 2012. "The motherhood wage gap: What about job amenities?," Labour Economics, Elsevier, vol. 19(1), pages 59-67.
    2. Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 66(4), pages 281-281.
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