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Having a child? Here is the bill - Parenthood, Earnings and Careers in an Internal Labor

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  • Dominique Meurs
  • Elena Vilar
  • Claudio Lucifora

Abstract

Using a unique 12-years panel of personnel records from a large French company, we ndthat becoming mother (extensive fertility margins) largely a ects labor market outcomes.Instead, fatherhood does not signi cantly impact on men's wages or careers. An event studyapproach with the use of non-parents as control group enables us to show that, prior tochildbirth, future mothers' earnings are in line with that of non-mothers. However, one yearafter birth, they start to fall, reaching -9% in total pay and -30% in individual bonuses.This drop is persistent: 8 years after childbirth there is no evidence of a catching-up trend.Mothers also have lower chances to climb-up the hierarchy of the rm and be promoted tomanagerial positions. A decomposition of the motherhood penalty shows that these \missedpromotions", likely due to an increase in absenteeism during the child's pre-school age, arethe main determinants of mothers' lower outcomes within the rm.

Suggested Citation

  • Dominique Meurs & Elena Vilar & Claudio Lucifora, 2019. "Having a child? Here is the bill - Parenthood, Earnings and Careers in an Internal Labor," EconomiX Working Papers 2019-13, University of Paris Nanterre, EconomiX.
    • Handle: RePEc:drm:wpaper:2019-13
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    More about this item

    Keywords

    Children Motherhood penalty Gender inequalities Event study;

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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