The Evolution of Motherhood Wage Penalties - A Cross-National Decomposition Exercise

Sander Wagner , Leverhulme Centre for Demographic Sciences
Pacal Achard, CREST - Center for Research in Economics and Statistics, Palaiseau Cedex
Andreas Filser, Institute for Employment Research (IAB)
Corinna Frodermann, Institute for Employment Research

We combine large administrative data from four countries, France and Germany (included) and Denmark and the Netherlands (being prepared) to study the evolution of the motherhood penalty over time. Initially we look how the income loss associated up to five years after birth, associated with motherhood changed for employed mothers throughout the period 1997-2014. Then we study motherhood penalties in mothers employment, working time and hourly wages to understand the evolution of the different components of motherhood penalties over time. Initial results show that motherhood wage penalties in France and Germany are slowly shrinking, with increased employment after birth being a major driver. The shrinking of the penalties is however slowed down by an increasing propensity for mothers to transition to part-time work in both countries.

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 Presented in Session 55. Labour Force Transitions and Life Stages