New paper with Kamila Cygan-Rehm (@tudresden.bsky.social) and Regina T. Riphahn (@fauwiso.bsky.social) out now in Socio-Economic Review (@sasemeeting.bsky.social)! We investigate how Minijobs (subisidized small jobs) affect motherhood penalties in the long run 1/13 - ThreadSky

mcollischon.bsky.social • 1 day ago

New paper with Kamila Cygan-Rehm (@tudresden.bsky.social) and Regina T. Riphahn (@fauwiso.bsky.social) out now in Socio-Economic Review (@sasemeeting.bsky.social)! We investigate how Minijobs (subisidized small jobs) affect motherhood penalties in the long run 1/13

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mcollischon.bsky.social•1 day ago

German Minijobs (employment below a threshold; currently €556 per month) are a subisidized form of employment exempt from income tax payments and social security contributions; they are also exempt from joint taxation. They are especially popular among mothers. 2/13

mcollischon.bsky.social•1 day ago

However, Minijobs generate discincentives for expanding the labor supply above the threshold, especially for married woman. Crossing the threshold renders labor income subject to joint taxation with the marginal taxrates of the spouse. 3/13

mcollischon.bsky.social•1 day ago

The figure shows different examples with a €400 threshold. Overall, to obtain the same net payments, individuals need to earn for more, which likely means working far more hours. 4/13

mcollischon.bsky.social•1 day ago

We analyze whether Minijobs affect the long-term career trajectories of mothers with data from the SIAB (@iabnews.bsky.social). We use data on West German mothers from 1999 to 2006 and track them up to 10 years after childbirth. We investigate employment as well as pay as outcomes. 5/13

mcollischon.bsky.social•1 day ago

Descriptively, we observe substantial motherhood penalties in employment and earnings that are in line with the previous literature on Germany. 6/13

mcollischon.bsky.social•1 day ago

Selection into Minijobs is not random. To identify the causal effect of Minijobs, we use propensity score matching to match mothers in regular employment 13 months after births to mothers in Minijobs and compare their trajectories over time using an event study approach. 7/13

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