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The motherhood wage penalty in times of transition

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  • Nizalova, Olena Y.
  • Sliusarenko, Tamara
  • Shpak, Solomiya

Abstract

Depopulation trend in Ukraine caused to a large extent by the lowest low fertility rates raises serious concerns about the long-term economic growth and the country's future in general. In this paper we investigate the existence and the extent of the motherhood wage penalty as a potential impediment to having (more) children in a unique institutional environment. This environment is characterized by: de jure family supportive labor laws but de facto no legal enforcement of these laws; publicly subsidized childcare; and low cultural support for maternal employment, combined with extensive involvement of grand-parents. Relying on the data from the Ukrainian Longitudinal Monitoring Survey over the period from 1997 to 2007, we find that the overall motherhood wage penalty in Ukraine is much lower than in countries with similar de jure family policies and cultural norms. It constitutes approximately 19%, controlling for individual unobserved heterogeneity, a number of human capital characteristics, actual time in the labor force, and selection into employment. We also find that the motherhood wage penalty differs by education, age at birth of first child, and marital status.

Suggested Citation

  • Nizalova, Olena Y. & Sliusarenko, Tamara & Shpak, Solomiya, 2016. "The motherhood wage penalty in times of transition," Journal of Comparative Economics, Elsevier, vol. 44(1), pages 56-75.
    • Handle: RePEc:eee:jcecon:v:44:y:2016:i:1:p:56-75
    DOI: 10.1016/j.jce.2015.10.009
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    4. Nikolova, Elena & Polansky, Jakub, 2022. "Children and female employment in Mongolia," Economic Systems, Elsevier, vol. 46(3).
    5. Ewa Cukrowska-Torzewska & Anna Lovasz, 2017. "The Impact of Parenthood on the Gender Wage Gap – a Comparative Analysis of 26 European Countries," Working Papers 2017-25, Faculty of Economic Sciences, University of Warsaw.
    6. Ewa Cukrowska-Torzewska, 2015. "She Cares and He Earns? The Family Gap in Poland," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 42.
    7. Nikolova, Elena & Polansky, Jakub, 2022. "Children and Female Employment in Mongolia," GLO Discussion Paper Series 1015, Global Labor Organization (GLO).
    8. Pritchett, Irina, 2015. "Wage Penalties for Motherhood and Child-rearing in Post-Soviet Russia," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205241, Agricultural and Applied Economics Association.
    9. Elena Nikolova, 2017. "Can diversity encourage entrepreneurship in transition economies?," IZA World of Labor, Institute of Labor Economics (IZA), pages 313-313, May.
    10. Ewa Cukrowska-Torzewska & Anna Matysiak, 2018. "The Motherhood Wage Penalty: A Meta-Analysis," VID Working Papers 1808, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.

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    More about this item

    Keywords

    Motherhood wage penalty; Wage differentials; Human capital; Family policies;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General

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