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International differences in the family gap in pay : the role of labor market institutions

Internationaler Vergleich des Einkommensunterschieds von Familien: die Rolle von Arbeitsmarktinstitutionen

Fernández-Kranz, Daniel; Dupuy, Arnaud


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Abstract Using microdata for 35 countries over the period 1985-1994-2002 we find that labor market institutions traditionally associated to more compressed wage structures are associated to a higher family gap. Our results indicate that these policies reduce the price effect of having children but aggravate the human capital loss due to motherhood. We also find evidence that policies that help women continue in the same job after childbirth decrease the family gap. Of all the countries we study, mothers in Southern Europe suffer the biggest family gap and our analysis indicates that this is due to the bad combination of labor market policies in these countries. Our results are robust to specification changes and indicate that the main reason mothers lag behind other women in terms of earnings is the loss of accumulated job market experience caused by career breaks around childbirth.
Klassifikation Arbeitsmarktforschung; Arbeitsmarktpolitik
Freie Schlagwörter family wage gap; motherhood; turnover
Publikationsjahr 2009
Seitenangabe S. 413-438
Zeitschriftentitel Applied Economics, 43 (2009) 4
DOI http://dx.doi.org/10.1080/00036840902950580
Status Postprint; begutachtet (peer reviewed)
Lizenz PEER Licence Agreement (applicable only to documents from PEER project)