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Establishment Relations and Fatherhood Wage Premiums

Presented by Professor Lynn Prince Cooke, University of Bath

Fathers often earn more than their childless counterparts, although effects can vary among groups of men. Most of this literature uses micro data and attributes these wage effects to individual selection. We instead draw on relational inequality theory (RIT) to argue the importance of establishment relations behind group differences in net fatherhood wage premiums.

Event details

Establishments have received less attention in the stratification literature because of an historical lack of representative data, even though they account for as much wage variation as occupations. We develop arguments that contrast the organizational scenarios in which high-skill fathers might exploit their relative position to enhance their net wage premiums, with those in which lower-skill fathers might hoard collective group power for larger net premiums. These hypotheses are tested using 1995 to 2015 waves of Finnish longitudinal linked employee-employer data (FLEED). The FLEED is compiled from administrative data, allowing us to compare the wages of fathers versus childless men in the same occupation and establishment (job cell). Results reveal that skill differences in job-cell effects are partially contingent on establishment group relations.


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