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From Motherhood Penalties to Fatherhood Premia: The New Challenge for Family Policy

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  • Petersen, Trond
  • Penner, Andrew
  • Hogsnes, Geir
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    Abstract

    The processes that occur in the family are today probably the largest obstacle to continued progress in gender equality in the workplace. Gender differences in wages between single men and women are consistently found to be considerably smaller than among men and women who are married or have children. This study examines how family processes affect gender differences on wages using longitudinal matched employee-employer data from Norway, 1980-1997. We find that over this period the large wage penalty initially associated with marriage and children for women decreases substantially, so that by 1997 women who do the same work for the same employer earn similar wages, regardless of marital status or motherhood. This is not true among men, where the small wage premia for marriage and fatherhood remain relatively constant across this period. Thus, while gender differences at the beginning of this period were primarily due to women being penalized for marriage and motherhood, by the end of this period, family processes create gender differences in wages primarily through the premia for men. These results suggest that Norwegian family policies have been largely successful at ameliorating the wage penalties for women, so that the role of family on gender differences in wages is now primarily due to the male premia. We explore how these processes play out in wage growth and promotions, and conclude by discussing the policy implications of these findings for Norway and the United States.

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    Bibliographic Info

    Paper provided by Institute of Industrial Relations, UC Berkeley in its series Institute for Research on Labor and Employment, Working Paper Series with number qt9fw3f7vj.

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    Date of creation: 17 Jul 2007
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    Handle: RePEc:cdl:indrel:qt9fw3f7vj

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    1. Joni Hersch & Leslie S. Stratton, 2000. "Household specialization and the male marriage wage premium," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 54(1), pages 78-94, October.
    2. Datta Gupta, Nabanita & Smith, Nina, 2001. "Children and Career Interruptions: The Family Gap in Denmark," IZA Discussion Papers 263, Institute for the Study of Labor (IZA).
    3. Dex, Shirley & Joshi, Heather, 1999. "Careers and Motherhood: Policies for Compatibility," Cambridge Journal of Economics, Oxford University Press, vol. 23(5), pages 641-59, September.
    4. Abbigail J. Chiodo & Michael T. Owyang, 2002. "For love or money: why married men make more," The Regional Economist, Federal Reserve Bank of St. Louis, issue Apr, pages 10-11.
    5. Esping-Andersen, Gosta, 1999. "Social Foundations of Postindustrial Economies," OUP Catalogue, Oxford University Press, number 9780198742005.
    6. Davies, Rhys & Pierre, Gaelle, 2005. "The family gap in pay in Europe: a cross-country study," Labour Economics, Elsevier, vol. 12(4), pages 469-486, August.
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