Families, firms and fertility – wage gaps and fertility gaps within and between firms

Project leader

Funding source

Swedish Institute for Labour Market Policy Evaluation (IFAU)


Can increased wage dispersion within industry be linked to despecialization within families and increased female labour force participation? Has this development in Sweden been spurred further by reforms of family policy, i.e. the so-called daddy-month and the recent introduction of an "equality bonus" in the parental insurance, that have specifically aimed at despecialization within families?

Increased labour supply of mothers and stronger family commitment of fathers may induce some firms to adopt family friendly technologies that allow women and med to combine family responsibility and work at relatively low salaries, while other firms offer high salaries in return for stronger career commitment. The coexistence of firms adopting different technologies implies that individuals may sort according to their relative preferences for career and family obligations. This process is modelled theoretically and implications for intra-firm and industry gender wage gaps and gender fertility gaps are tested empirically using matched employer-employee data from the IFAU database for the years 1985-2007.

Last updated on 2017-23-03 at 09:01