() and Astrid Kunze
Mette Ejrnæs: University of Copenhagen, Postal: Department of Economics, University of Copenhagen, Copenhagen, Denmark
Astrid Kunze: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH , Department of Economics, Helleveien 30, N-5045 Bergen, Norway
Abstract: This study investigates how the first childbirth affects the wage processes of women who are well-established in the labour market. We estimate a flexible …fixed-effects wage regression model extended by post-childbirth…fixed effects. We use register data on West Germany and exploit the expansionary family policy during the late 1980s and 1990s for identification. On their return to work after childbirth, mothers’wages drop by 3 to 5.7 per cent per year of leave. We find negative selection back to full-time work after childbirth. We discuss policy implications regarding statistical discrimination and results concerning the family gap.
32 pages, February 29, 2012
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