The effect of housework on wages in Germany: no impact at all

Journal for Labour Market Research

Table 5 (Fixed-effects) instrumental-variables wage regressions for East and West Germany by marital status and gender

	West Germany				East Germany
	Single		Married		Single		Married
	Women	Men	Women	Men	Women	Men	Women	Men
GSOEP (FE IV)
Housework (hrs per week)	0.0298	−0.0746	0.0676	0.0083	−0.0202	0.0509	−0.0025	−0.0093
Housework (hrs per week)	(0.0759)	(0.1612)	(0.0361)	(0.0048)	(0.0268)	(0.1080)	(0.0120)	(0.0120)
Housework × part time	0.1062	0.5080	−0.0706	0.0764	0.0116	−0.3611	−0.0143	−0.0476
Housework × part time	(0.0854)	(0.6828)	(0.0447)	(0.0423)	(0.0244)	(0.5760)	(0.0239)	(0.0656)
Sargan-Hansen test (p value)	0.7428	0.3830	0.6003	0.8466	0.4589	0.7695	0.8591	0.1085
Durban-Wu-Hausman test (p value)	<0.0001	0.5771	0.0059	<0.0001	1.0000	0.9730	1.0000	0.9969
Observations	4,679	5,140	14,106	20,719	1,448	1,754	6,103	6,459
Individuals	1,457	1,575	3,440	4,455	467	535	1,332	1,439
GTUS (IV)
Housework (hrs per week)	−0.0432	0.2400	0.0440	0.0390	−0.0126	0.0300	0.0027	0.0107
Housework (hrs per week)	(0.0890)	(1.1584)	(0.0590)	(0.0181)	(0.0324)	(0.0233)	(0.1441)	(0.0174)
Housework × part time	−0.0581	−0.5781	0.0118	−0.1559	−0.1488	Omitted	0.0249	0.0576
Housework × part time	(0.1535)	(2.4363)	(0.0606)	(0.1089)	(0.2559)	Omitted	(0.2847)	(0.1123)
Sargan test (p value)	0.8187	0.6865	0.1649	0.6144	0.7892	0.5691	0.6029	0.0615
Robust Hausman test (p value)	1.0000	1.0000	1.0000	0.5867	1.0000	1.0000	1.0000	1.0000
Individuals	350	214	724	981	92	52	214	226

Notes: The data sets used are the GSOEP, waves 2000–2009, and the GTUS 2001/2002. The dependent variable is the log gross hourly wage in the GSOEP samples and the log net hourly wage in the GTUS samples, respectively. Standard errors (clustered at the individual level in the GSOEP samples and robust in the GTUS samples) are given in parentheses. Further controls included are years of schooling, experience (linearly and squared), tenure (linearly and squared), number of children in the household, sets of dummy variables for flexible working time, temporary contract, establishment size, states of residence, years, one-digit industry, and one-digit occupation. Instruments for housework included in the first stage regressions are two dummy variables for living in a house (as opposed to a flat) and residence ownership as well as the size of the place. “Omitted” refers to cells with no observations