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Does the Gap in Family‐friendly Policies Drive the Family Gap? *
Author(s) -
Nielsen Helena Skyt,
Simonsen Marianne,
Verner Mette
Publication year - 2004
Publication title -
scandinavian journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.725
H-Index - 64
eISSN - 1467-9442
pISSN - 0347-0520
DOI - 10.1111/j.0347-0520.2004.00385.x
Subject(s) - family friendly , depreciation (economics) , environmentally friendly , human capital , wage , economics , dimension (graph theory) , labour economics , capital (architecture) , economic growth , engineering , work (physics) , capital formation , financial capital , mechanical engineering , ecology , history , mathematics , archaeology , pure mathematics , biology
Segregation of the labour market into a family‐friendly and a non‐family‐friendly sector implies that women self‐select into sectors depending on institutional constraints, preferences for family‐friendly working conditions and expected wage differences. We take this sector dimension into account and find a severe penalty after birth‐related leave in the non‐family‐friendly sector, so that women who would be affected by this penalty self‐select into the family‐friendly sector. The penalty is a combination of a large human‐capital depreciation effect, a child penalty and no recovery.