The Wage Effects of Entering Motherhood : A Within-firm Matching Approach


Beblo, Miriam ; Bender, Stefan ; Wolf, Elke


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URL: http://ub-madoc.bib.uni-mannheim.de/1377
URN: urn:nbn:de:bsz:180-madoc-13771
Document Type: Working paper
Year of publication: 2006
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: J13 J31 C14 ,
Subject headings (SWD): Lohn , Mutterschaftsurlaub , Matching
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.
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Beblo, Miriam ; Bender, Stefan ; Wolf, Elke (2006) The Wage Effects of Entering Motherhood : A Within-firm Matching Approach. Open Access [Working paper]
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