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Parental labor market penalties during two years of COVID-19

Author

Listed:
  • Maria De Paola

    (University of Calabria)

  • Salvatore Lattanzio

    (Bank of Italy)

Abstract

We use a matched employer-employee dataset covering the universe of employees in the Italian private sector to compare labor market outcomes for mothers and fathers during the pandemic. We find that mothers experienced a larger penalty in terms of reduced labor market earnings compared to fathers (-17.4 vs -8.6 percent) in 2020 and the first half of 2021. In contrast, starting from July 2021, we observe similar trends in mothers' and fathers' earnings. Evidence highlighting differences in penalties according to the sector of activity (essential vs non-essential), the type of contract, the age of children, and the pre-pandemic mother-father pay gap suggests that both demand and supply factors have played a role in explaining the gendered impact of COVID-19.

Suggested Citation

  • Maria De Paola & Salvatore Lattanzio, 2023. "Parental labor market penalties during two years of COVID-19," Questioni di Economia e Finanza (Occasional Papers) 749, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_749_23
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    More about this item

    Keywords

    COVID-19; parenthood; recession;
    All these keywords.

    JEL classification:

    • 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
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General

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