Mothers' Transitions into the Labor Market under Two Political Systems: Comparing East and West Germany before Reunification

Using new longitudinal datasets that cover the work and family life of women in the Federal Republic of Germany (FRG) and the German Democratic Republic (GDR), we analyze women's employment discontinuities following childbirth. We find that in the GDR almost all mothers return to work within 18 months after birth. In the FRG, this proportion is much smaller and at the age when the child starts nursery school or school, women re-enter the labor market at higher rates. An analysis of the determinants of women's labor market transitions after childbirth reveals a strong correlation between mothers' employment status prior to birth and their probability of re-entering the labor market afterwards