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The Willingness to Pay for Job Amenities: Evidence from Mothers' Return to Work

41 Pages Posted: 16 Aug 2009  

Andrea Christina Felfe

affiliation not provided to SSRN

Multiple version iconThere are 2 versions of this paper

Date Written: August 2009

Abstract

This study is the first to estimate mothers’ marginal willingness to pay (MWP) for job amenities directly. Its identification strategy relies on German maternity leave length. The key aspect of the maternal leave framework is that mothers can decide whether and when to return to their guaranteed job. Thus, in contrast to previous studies that analyze the job search of employed workers, this framework allows us to overcome the limitation of not observing the wage/amenity offer process. A theoretical model of the leave length decision is derived from a random utility approach. Using data from the German Socio-Economic Panel and the Qualification and Career Survey, this model is estimated by a discrete duration method. The MWP for amenities can be inferred through the estimated elasticities of the leave length with respect to the amenities and the wage. The results provide evidence that mothers are willing to sacrifice a significant fraction of their wage to reduce hazards (22%) and to enjoy a flexible working schedule (36-56%).

Keywords: marginal willingness to pay, maternal labor supply, discrete duration models

JEL Classification: J31, J33, J22

Suggested Citation

Felfe, Andrea Christina, The Willingness to Pay for Job Amenities: Evidence from Mothers' Return to Work (August 2009). CESifo Working Paper Series No. 2743. Available at SSRN: https://ssrn.com/abstract=1447242

Andrea Christina Felfe (Contact Author)

affiliation not provided to SSRN ( email )

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