Gendered Relationship of Childbearing with Earnings Accumulated by Midlife in Two Nordic Countries

Jessica Nisén , University of Turku
Anni Erlandsson, University of Turku
Marika Jalovaara, University of Turku

Nordic countries are considered advanced in terms of gender equality, but also in these countries women still take longer family leaves and have lower earnings than men. This study provides novel insight by assessing the differences in accumulated earnings by midlife associated with childbearing among women and men in Finland and Sweden. We place particular attention to the magnitude of the gender gap in accumulated earnings across groups characterized by different childbearing history and level of education. We hypothesize larger gender gaps among those with a larger number of children and an earlier timing of entry into parenthood, among those with a lower level of education, and overall, in Finland. The study is based on full-population register data, with highly accurate longitudinal measures of individual labor earnings across decades. Our results on cohorts born in 1974–1975 indicate that women accumulated on average 32 % and 29 % less labor earnings than men by age 44 in Finland and Sweden, respectively. The number and timing of children strongly modifies the magnitude of the gender gap, especially in Finland. Among the more highly educated, the gaps are moderately smaller in both countries. In light of the limited previous evidence on gender gaps in accumulated earnings, these findings suggest gaps in earnings accumulated until midlife that are smaller in the Nordic countries than in some other countries, yet still sizeable for countries considered forerunners in gender equality.

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 Presented in Session 112. Flash session Gender, Work and Parenthood