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16. Mai 2017

Employment Adjustments around Childbirth

Ein Vortrag von Filip Pertold (CERGE-EI and IDEA, Prague) im Rahmen der Seminarreihe des AB Ökonomie am IOS.
Datum: 16.5.2017
Zeit: 13.30 Uhr
Ort: WiOS, Landshuter Str. 4 (Raum 109)

Using longitudinal data from Denmark we study how women active in the labour market react to the event of childbirth. We find that mothers –post first childbirth– are increasingly switching from the competitive private sector to the family-friendly public sector thus significantly changing the composition of employees in each of the sectors. Using a difference-in-differences event study approach we show that within the first years after birth the probability that a mother switches from private to public sector can be fully explained by the convexity of pay with respect to hours worked and the prevalence of part time employment in private sector occupations. Supportive analysis reveals that mothers who move from private into public sector are not motivated to switch by low wage growth in the private sector, are promoted to higher occupation rank in the public sector, and do not suffer from a post-switch wage drop. This suggests that the public sector attracts relatively productive female employees away from the private sector, i.e., a post motherhood brain drain. Such sorting behaviour increases the gender wage gap observed in the private sector. These results can be generalized to other settings with high mobility of labour and where jobs differ according to the degree to which they allow for family-friendly work conditions.