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The Motherhood Wage Penalty in a Mediterranean Country: The Case of Spain

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Author Info
Molina, José Alberto () (University of Zaragoza)
Montuenga, Víctor M. () (University of Zaragoza)

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Abstract

We present evidence for the motherhood wage penalty in Spain as a representative Southern European Mediterranean country. We use the European Community Household Panel (ECHP, 1994-2001) to estimate, from both pool and fixed-effects methods, a wage equation in terms of observed variables and other non-observed individual characteristics. The empirical results confirm that there is clear evidence of a wage penalty for Spanish working women with children. Specifically, the fact that there is a birth in the family during the current year means that the woman loses 9% of her wage. We also find that having one child living in the household means a significant loss in wages of 6%, having two children, almost 14%, and having three or more, more than 15%.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3574.

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Date of creation: Jun 2008
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Handle: RePEc:iza:izadps:dp3574

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Related research
Keywords: motherhood wage penalty; fixed-effects estimation; Spain;

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Find related papers by JEL classification:
J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
D10 - Microeconomics - - Household Behavior - - - General
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data

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References listed on IDEAS
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    Other versions:
  3. de la Rica, Sara & Dolado, Juan J. & Llorens, Vanesa, 2005. "Ceiling and Floors: Gender Wage Gaps by Education in Spain," IZA Discussion Papers 1483, Institute for the Study of Labor (IZA). [Downloadable!]
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  12. Deborah J. Anderson & Melissa Binder & Kate Krause, 2002. "The Motherhood Wage Penalty: Which Mothers Pay It and Why?," American Economic Review, American Economic Association, vol. 92(2), pages 354-358, May. [Downloadable!]
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  16. Inmaculada García & José Alberto Molina & Víctor M. Montuenga, 2009. "Intra-Household Time Allocation: Gender Differences in Caring for Children," SOEPpapers 197, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
    Other versions:
  17. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March. [Downloadable!] (restricted)
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  20. Michelle M. Livermore & Rebecca S. Powers, 2006. "Employment of Unwed Mothers: The Role of Government and Social Support," Journal of Family and Economic Issues, Springer, vol. 27(3), pages 479-494, September. [Downloadable!] (restricted)
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  27. Lyn Craig, 2007. "How Employed Mothers in Australia Find Time for Both Market Work and Childcare," Journal of Family and Economic Issues, Springer, vol. 28(1), pages 69-87, March. [Downloadable!] (restricted)
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