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The wage effects of entering motherhood: a within-firm matching approach

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  • Beblo, Miriam
  • Bender, Stefan
  • Wolf, Elke

Abstract

We analyze the wage effects of employment breaks of women entering motherhood using a novel within-firm matching approach where mothers? wages upon return to the job are compared with those of their female colleagues within the same firm. Using an administrative German data set we investigate three different matching procedures based on information two years before birth: (1) exact matching on individual characteristics, (2) propensity score matching and (3) a combined procedure of exact and propensity score matching. Our results yield new insights into the nature of the wage penalty associated with motherhood, since we find first births to reduce women?s wages by 16 to 19 percent, regardless of the matching procedure applied. Neglecting the firm identifier and matching across all firms, however, yields a wage cut of 30 percent. Furthermore, we can show that the wage loss increases with the duration of the employment break.

Suggested Citation

  • Beblo, Miriam & Bender, Stefan & Wolf, Elke, 2006. "The wage effects of entering motherhood: a within-firm matching approach," ZEW Discussion Papers 06-053, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:5447
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    Cited by:

    1. Fuchs, Michaela & Lawitzky, Corinna & Rossen, Anja & Weyh, Antje, 2020. "Geschlechtsspezifische Lohnunterschiede in Thüringen," IAB-Regional. Berichte und Analysen aus dem Regionalen Forschungsnetz. IAB Sachsen-Anhalt-Thüringen 202002, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    2. Michaela Fuchs & Corinna Lawitzki & Anja Rossen & Antja Weyh, 2020. "Der bereinigte Gender Pay Gap: Warum Frauen in Sachsen eigentlich mehr verdienen müssten als Männer," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 27(03), pages 15-21, June.
    3. Rossen, Anja & Fuchs, Michaela & Lawitzky, Corinna & Weyh, Antje, 2019. "Geschlechtsspezifische Lohnunterschiede in Bayern," IAB-Regional. Berichte und Analysen aus dem Regionalen Forschungsnetz. IAB Bayern 201903, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    4. Katrin Sommerfeld, 2009. "Older Babies - More Active Mothers? How Maternal Labor Supply Changes as the Child Grows," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 129(2), pages 227-240.
    5. J.D. Vlasblom & J. Plantenga, 2010. "Career effects of taking up parental leave. Evidence from a Dutch University," Working Papers 10-14, Utrecht School of Economics.
    6. Hohendanner, Christian, 2007. "Verdrängen Ein-Euro-Jobs sozialversicherungspflichtige Beschäftigung in den Betrieben?," IAB-Discussion Paper 200708, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    7. Kruppe, Thomas, 2006. "Die Förderung beruflicher Weiterbildung : eine mikroökonometrische Evaluation der Ergänzung durch das ESF-BA-Programm," IAB-Discussion Paper 200621, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    8. van den Berg, Gerard J. & Gupta, Sumedha, 2015. "The role of marriage in the causal pathway from economic conditions early in life to mortality," Journal of Health Economics, Elsevier, vol. 40(C), pages 141-158.
    9. Blien, Uwe & Kirchhof, Kai & Ludewig, Oliver, 2006. "Agglomeration effects on labour demand," IAB-Discussion Paper 200628, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    10. Amend, Elke & Herbst, Patrick, 2008. "Labor market pooling and human capital investment decisions," IAB-Discussion Paper 200804, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    11. repec:iab:iabfme:200803(en is not listed on IDEAS
    12. Fuchs, Michaela & Lawitzky, Corinna & Rossen, Anja & Weyh, Antje, 2020. "Geschlechtsspezifische Lohnunterschiede in Sachsen-Anhalt," IAB-Regional. Berichte und Analysen aus dem Regionalen Forschungsnetz. IAB Sachsen-Anhalt-Thüringen 202001, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    13. Kuhlenkasper, Torben & Kauermann, Göran, 2010. "Duration of maternity leave in Germany: A case study of nonparametric hazard models and penalized splines," Labour Economics, Elsevier, vol. 17(3), pages 466-473, June.
    14. Weyh, Antje & Lawitzky, Corinna & Rossen, Anja & Fuchs, Michaela, 2019. "Geschlechtsspezifische Lohnunterschiede in Sachsen," IAB-Regional. Berichte und Analysen aus dem Regionalen Forschungsnetz. IAB Sachsen 201902, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    15. Buligescu, B. & de Crombrugghe, D.P.I. & Mentesoglu, G. & Montizaan, R.M., 2008. "Estimating the wage penalty for maternal leave," ROA Research Memorandum 005, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    16. Schönberg, Uta, 2008. "Does the IABS reliably identify maternity leave taking?," FDZ Methodenreport 200803_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    17. Eckey, Hans-Friedrich & Schwengler, Barbara & Türck, Matthias, 2007. "Vergleich von deutschen Arbeitsmarktregionen," IAB-Discussion Paper 200703, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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    More about this item

    Keywords

    wages; parental leave; matching;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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