The Effect of Motherhood on Wages and Wage Growth: Evidence for Australia
AbstractLabour market theory provides several reasons why mothers are likely to earn lower hourly wages than non-mothers. However, the size of any motherhood penalty is an empirical matter and the evidence for Australia is limited. This paper examines the effect of motherhood on Australian womenâs wages and wage growth using a series of panel-data models which control for other relevant factors, both observed and unobserved. Using data from the Household, Income and Labour Dynamics in Australia (HILDA) survey, an unexplained motherhood wage penalty of around four per cent for one child, and eight per cent for two or more children, is found. Further analysis suggests that the wage penalty emerges over time through reduced wage growth, rather than through an immediate wage decline after the birth of a child. This reduction in wage growth is consistent with discrimination but also with a reduction in mothersâ work effort.
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Bibliographic InfoArticle provided by The Economic Society of Australia in its journal The Economic Record.
Volume (Year): 87 (2011)
Issue (Month): s1 (09)
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Other versions of this item:
- Livermore, Tanya & Siminski, Peter & Rodgers, Joan, 2010. "The Effect of Motherhood on Wages and Wage Growth: Evidence for Australia," Economics Working Papers wp10-12, School of Economics, University of Wollongong, NSW, Australia.
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Catalina Amuedo-Dorantes & Jean Kimmel, 2005.
"“The Motherhood Wage Gap for Women in the United States: The Importance of College and Fertility Delay”,"
Review of Economics of the Household,
Springer, vol. 3(1), pages 17-48, 09.
- Catalina Amuedo-Dorantes & Jean Kimmel, 2004. "The Motherhood Wage Gap for Women in the United States: The Importance of College and Fertility Delay," Economic Working Papers at Centro de Estudios Andaluces E2004/07, Centro de Estudios Andaluces.
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