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The child penalty in Spain

Author

Listed:
  • Alicia de Quinto

    () (Banco de España)

  • Laura Hospido

    () (Banco de España)

  • Carlos Sanz

    () (Banco de España)

Abstract

The role of parenthood in the gender pay gap has been extensively discussed in the literature. Using data from social security records, we adopt the methods used for other countries to evaluate the existence of a child penalty in Spain, looking at disparities for women and men across different labor outcomes following the birth of the first child. Our findings suggest that, the year after the first child is born, mothers’ annual earnings drop by 11 percent while men’s remain unaffected. The gender gap is even larger ten years after the birth. Our estimate of the long-run child penalty in earnings equals 28 percent, similar in magnitude to that found for Sweden and Denmark, and smaller than in the UK, the US, Germany, and Austria. In addition, we identify channels that may drive this phenomenon, including reductions in working days and shifts to part-time or fixed-term contracts. Finally, we encounter heterogeneous responses in earnings and labor market participation by educational level: college-educated women react to motherhood more on the intensive margin (working part-time), while non-college-educated women are relatively more likely to do so in the extensive margin (working fewer days).

Suggested Citation

  • Alicia de Quinto & Laura Hospido & Carlos Sanz, 2020. "The child penalty in Spain," Occasional Papers 2017, Banco de España;Occasional Papers Homepage.
  • Handle: RePEc:bde:opaper:2017
    as

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    File URL: https://www.bde.es/f/webbde/SES/Secciones/Publicaciones/PublicacionesSeriadas/DocumentosOcasionales/20/Files/do2017e.pdf
    File Function: First version, July 2020
    Download Restriction: no

    References listed on IDEAS

    as
    1. Jérôme Adda & Christian Dustmann & Katrien Stevens, 2017. "The Career Costs of Children," Journal of Political Economy, University of Chicago Press, vol. 125(2), pages 293-337.
    2. Thomas Buser & Muriel Niederle & Hessel Oosterbeek, 2014. "Gender, Competitiveness, and Career Choices," The Quarterly Journal of Economics, Oxford University Press, vol. 129(3), pages 1409-1447.
    3. Esteban García-Miralles & Nezih Guner & Roberto Ramos, 2019. "The Spanish personal income tax: facts and parametric estimates," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 10(3), pages 439-477, November.
    4. Francine D. Blau & Lawrence M. Kahn, 2017. "The Gender Wage Gap: Extent, Trends, and Explanations," Journal of Economic Literature, American Economic Association, vol. 55(3), pages 789-865, September.
    5. Nikolay Angelov & Per Johansson & Erica Lindahl, 2016. "Parenthood and the Gender Gap in Pay," Journal of Labor Economics, University of Chicago Press, vol. 34(3), pages 545-579.
    6. Fernández-Kranz Daniel & Aitor Lacuesta & Núria Rodríguez-Planas, 2013. "The Motherhood Earnings Dip: Evidence from Administrative Records," Journal of Human Resources, University of Wisconsin Press, vol. 48(1), pages 169-197.
    7. Henrik Kleven & Camille Landais & Jakob Egholt Søgaard, 2019. "Children and Gender Inequality: Evidence from Denmark," American Economic Journal: Applied Economics, American Economic Association, vol. 11(4), pages 181-209, October.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    gender; labor supply; employment; wage differentials; parenting; education;

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • 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
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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