Scandinavian Working Papers in Economics

Working Papers,
University of Aarhus, Aarhus School of Business, Department of Economics

No 02-19: Does the Gap in Family-friendly Policies Drive the Family Gap?

Helena Skyt Nielsen, Marianne Simonsen () and Mette Verner ()
Additional contact information
Helena Skyt Nielsen: Department of Economics, Aarhus School of Business, Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark
Marianne Simonsen: Department of Economics, University of Aarhus, Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark
Mette Verner: Department of Economics, Aarhus School of Business, Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark

Abstract: A segregation of the labour market into a family-friendly and a non-family friendly sector has the effect that women self-select into the sectors depending on institutional constraints, preferences for family-friendly working conditions and expected wage differences. We find that neglecting the sector dimension tends to understate the effect of birth-related interruptions in both sectors. The combined effect of a large depreciation effect and no recovery means that females in the non-family friendly sector (e.g. private sector) are punished severely after childbirth. In the family friendly sector (e.g. public sector), we find complete catch up.

Keywords: Fertility; family gap; career interruptions; wages; public vs. private sector

JEL-codes: J13; J22; J33; J45

38 pages, May 7, 2002

Note: Published in Scandinavian Journal of Economics, 106(4), pp721-744, 2004

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