IDEAS home Printed from https://ideas.repec.org/p/cpb/discus/424.html
   My bibliography  Save this paper

The Child Penalty in the Netherlands and its Determinants

Author

Listed:
  • Simon Rabaté

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Externe auteur: Sara Rellstab

    (Universit a della Svizzera Italiana, Lugano, Switzerland)

Abstract

Having children can result in large earnings penalties for mothers. Using extensive administrative data from the Netherlands, we assess the magnitude and drivers of the effects of first childbirth on parents' earnings trajectories in the Netherlands. We show that mothers' earnings are 46% lower compared to their pre-birth earnings trajectory, whereas fathers' earnings are unaffected by child birth. We examine the role of two potential determinants of the unequal distribution of parents' labour market costs by gender: childcare policies and gender norms. We find that while child care availability is correlated with lower child penalty, the immediate short-term causal effect of increasing child care availability on the earnings penalty of becoming a mother is small. By taking advantage of variation in gender norms in different population groups, we show that gender norms are strongly correlated with child penalty for mothers. Having children can result in large earnings penalties for mothers. Using extensive administrative data from the Netherlands, we assess the magnitude and drivers of the effects of first childbirth on parents' earnings trajectories in the Netherlands. We show that mothers' earnings are 46% lower compared to their pre-birth earnings trajectory, whereas fathers' earnings are unaffected by child birth. We examine the role of two potential determinants of the unequal distribution of parents' labour market costs by gender: childcare policies and gender norms. We find that while child care availability is correlated with lower child penalty, the immediate short-term causal effect of increasing child care availability on the earnings penalty of becoming a mother is small. By taking advantage of variation in gender norms in different population groups, we show that gender norms are strongly correlated with child penalty for mothers.

Suggested Citation

  • Simon Rabaté & Externe auteur: Sara Rellstab, 2021. "The Child Penalty in the Netherlands and its Determinants," CPB Discussion Paper 424, CPB Netherlands Bureau for Economic Policy Analysis.
    • Handle: RePEc:cpb:discus:424
    DOI: 10.34932/trkz-qh66
    as

    Download full text from publisher

    File URL: https://www.cpb.nl/sites/default/files/omnidownload/CPB-Discussion-Paper-424-The-Child-Penalty.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.34932/trkz-qh66?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Rosenzweig, Mark R & Wolpin, Kenneth I, 1980. "Life-Cycle Labor Supply and Fertility: Causal Inferences from Household Models," Journal of Political Economy, University of Chicago Press, vol. 88(2), pages 328-348, April.
    2. Claudia Olivetti & Barbara Petrongolo, 2017. "The Economic Consequences of Family Policies: Lessons from a Century of Legislation in High-Income Countries," Journal of Economic Perspectives, American Economic Association, vol. 31(1), pages 205-230, Winter.
    3. Moberg, Ylva, 2016. "Does the gender composition in couples matter for the division of labor after childbirth?," Working Paper Series 2016:8, Uppsala University, Department of Economics.
    4. Bertrand, Marianne, 2011. "New Perspectives on Gender," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 17, pages 1543-1590, Elsevier.
    5. Marianne Bertrand & Claudia Goldin & Lawrence F. Katz, 2010. "Dynamics of the Gender Gap for Young Professionals in the Financial and Corporate Sectors," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 228-255, July.
    6. Alessandra Fogli & Laura Veldkamp, 2011. "Nature or Nurture? Learning and the Geography of Female Labor Force Participation," Econometrica, Econometric Society, vol. 79(4), pages 1103-1138, July.
    7. Angrist, Joshua D & Evans, William N, 1998. "Children and Their Parents' Labor Supply: Evidence from Exogenous Variation in Family Size," American Economic Review, American Economic Association, vol. 88(3), pages 450-477, June.
    8. Francine D. Blau & Lawrence M. Kahn & Matthew Comey & Amanda Eng & Pamela Meyerhofer & Alexander Willén, 2020. "Culture and gender allocation of tasks: source country characteristics and the division of non-market work among US immigrants," Review of Economics of the Household, Springer, vol. 18(4), pages 907-958, December.
    9. Dominique Meurs & Pierre Porra, 2019. "Gender Equality on the Labour Market in France: A Slow Convergence Hampered by Motherhood," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 510-511-5, pages 109-130.
    10. Nicole Bosch & Anja Deelen & Rob Euwals, 2010. "Is Part‐time Employment Here to Stay? Working Hours of Dutch Women over Successive Generations," LABOUR, CEIS, vol. 24(1), pages 35-54, March.
    11. 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.
    12. Kleven, Henrik & Landais, Camille & Posch, Johanna & Steinhauer, Andreas & Zweimüller, Josef, 2020. "Do Family Policies Reduce Gender Inequality? Evidence from 60 Years of Policy Experimentation," CEPR Discussion Papers 15437, C.E.P.R. Discussion Papers.
    13. Lídia Farré & Francis Vella, 2013. "The Intergenerational Transmission of Gender Role Attitudes and its Implications for Female Labour Force Participation," Economica, London School of Economics and Political Science, vol. 80(318), pages 219-247, April.
    14. Elisabeth Cudeville & Martine Gross & Catherine Sofer, 2020. "Measuring Gender Norms in Domestic Work: A Comparison between Homosexual and Heterosexual Couples," Post-Print halshs-02468956, HAL.
    15. Bettendorf, Leon J.H. & Jongen, Egbert L.W. & Muller, Paul, 2015. "Childcare subsidies and labour supply — Evidence from a large Dutch reform," Labour Economics, Elsevier, vol. 36(C), pages 112-123.
    16. Alberto Alesina & Paola Giuliano & Nathan Nunn, 2013. "On the Origins of Gender Roles: Women and the Plough," The Quarterly Journal of Economics, Oxford University Press, vol. 128(2), pages 469-530.
    17. George A. Akerlof & Rachel E. Kranton, 2000. "Economics and Identity," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 715-753.
    18. 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.
    19. Fernández-Kranz, Daniel & Rodríguez-Planas, Núria, 2021. "Too family friendly? The consequences of parent part-time working rights," Journal of Public Economics, Elsevier, vol. 197(C).
    20. repec:hal:spmain:info:hdl:2441/1a68qg411o9bg9jp7fhgh60n5p is not listed on IDEAS
    21. Vella, Francis, 1994. "Gender Roles and Human Capital Investment: The Relationship between Traditional Attitudes and Female Labour Market Performance," Economica, London School of Economics and Political Science, vol. 61(242), pages 191-211, May.
    22. Sieppi, Antti & Pehkonen, Jaakko, 2019. "Parenthood and gender inequality: Population-based evidence on the child penalty in Finland," Economics Letters, Elsevier, vol. 182(C), pages 5-9.
    23. Moberg, Ylva, 2016. "Does the gender composition in Couples matter for the division of labor after childbirth?," Working Paper Series 2016:8, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    24. Claudia Olivetti & Barbara Petrongolo, 2017. "The Economic Consequences of Family Policies: Lessons from a Century of Legislation," Working Papers 811, Queen Mary University of London, School of Economics and Finance.
    25. Alicia de Quinto & Laura Hospido & Carlos Sanz, 2020. "The child penalty in Spain," Occasional Papers 2017, Banco de España.
    26. Steinhauer, Andreas, 2018. "Working Moms, Childlessness, and Female Identity," CEPR Discussion Papers 12929, C.E.P.R. Discussion Papers.
    27. P. Pora & L. Wilner, 2019. "Child Penalties and Financial Incentives: Exploiting Variation along the Wage Distribution," Documents de Travail de l'Insee - INSEE Working Papers g2019-08, Institut National de la Statistique et des Etudes Economiques.
    28. Petter Lundborg & Erik Plug & Astrid Würtz Rasmussen, 2017. "Can Women Have Children and a Career? IV Evidence from IVF Treatments," American Economic Review, American Economic Association, vol. 107(6), pages 1611-1637, June.
    29. Andreas Steinhauer, 2018. "Working Moms, Childlessness, and Female Identity," Working Papers hal-03475468, HAL.
    30. Nicole M Fortin, 2005. "Gender Role Attitudes and the Labour-market Outcomes of Women across OECD Countries," Oxford Review of Economic Policy, Oxford University Press, vol. 21(3), pages 416-438, Autumn.
    31. repec:hrv:faseco:33077826 is not listed on IDEAS
    32. Raquel Fernández & Alessandra Fogli & Claudia Olivetti, 2004. "Mothers and Sons: Preference Formation and Female Labor Force Dynamics," The Quarterly Journal of Economics, Oxford University Press, vol. 119(4), pages 1249-1299.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Simon Rabaté & Sara Rellstab, 2022. "What Determines the Child Penalty in the Netherlands? The Role of Policy and Norms," De Economist, Springer, vol. 170(2), pages 195-229, May.
    2. Cortes, Patricia & Pan, Jessica, 2020. "Children and the Remaining Gender Gaps in the Labor Market," IZA Discussion Papers 13759, Institute of Labor Economics (IZA).
    3. Nieto, Adrián, 2021. "Native-immigrant differences in the effect of children on the gender pay gap," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 654-680.
    4. Estefanía Galván & Cecilia García-Peñalosa, 2021. "Interactions amongst gender norms: Evidence from US couples," Documentos de Trabajo (working papers) 21-15, Instituto de Economía - IECON.
    5. Barigozzi, Francesca & Cremer, Helmuth & Roeder, Kerstin, 2018. "Women's career choices, social norms and child care policies," Journal of Public Economics, Elsevier, vol. 168(C), pages 162-173.
    6. Céline Piton, 2022. "The labour market performance of vulnerable groups: towards a better understanding of the main driving forces," ULB Institutional Repository 2013/352519, ULB -- Universite Libre de Bruxelles.
    7. Petrongolo, Barbara & Ronchi, Maddalena, 2020. "Gender gaps and the structure of local labor markets," Labour Economics, Elsevier, vol. 64(C).
    8. Cavapozzi, Danilo & Francesconi, Marco & Nicoletti, Cheti, 2021. "The impact of gender role norms on mothers’ labor supply," Journal of Economic Behavior & Organization, Elsevier, vol. 186(C), pages 113-134.
    9. de la Vega, Noa, 2022. "The differential effect of childbirth on men's and women's careers," Labour Economics, Elsevier, vol. 78(C).
    10. Roth, Anja, 2019. "How the provision of childcare affects attitudes towards maternal employment," Working papers 2019/22, Faculty of Business and Economics - University of Basel.
    11. Cemal Eren Arbatlı & Quamrul H. Ashraf & Oded Galor & Marc Klemp, 2020. "Diversity and Conflict," Econometrica, Econometric Society, vol. 88(2), pages 727-797, March.
    12. Andreas Steinhauer, 2018. "Working Moms, Childlessness, and Female Identity," Sciences Po publications 79, Sciences Po.
    13. Boelmann, Barbara & Raute, Anna & Schönberg, Uta, 2020. "Wind of Change? Cultural Determinants of Maternal Labor Supply," IAB-Discussion Paper 202030, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    14. 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.
    15. Steinhauer, Andreas, 2018. "Working Moms, Childlessness, and Female Identity," CEPR Discussion Papers 12929, C.E.P.R. Discussion Papers.
    16. repec:hal:spmain:info:hdl:2441/1a68qg411o9bg9jp7fhgh60n5p is not listed on IDEAS
    17. Andreas Steinhauer, 2018. "Working Moms, Childlessness, and Female Identity," Working Papers hal-03475468, HAL.
    18. Nan L. Maxwell & Nathan Wozny, 2021. "Gender Gaps in Time Use and Labor Market Outcomes: What’s Norms Got to Do with it?," Journal of Labor Research, Springer, vol. 42(1), pages 56-77, March.
    19. Zhao, Yucong & Ye, Bing & Shi, Jinchuan, 2022. "Gender identity, preference, and relative income within households," China Economic Review, Elsevier, vol. 71(C).
    20. Claudia Olivetti & Eleonora Patacchini & Yves Zenou, 2020. "Mothers, Peers, and Gender-Role Identity," Journal of the European Economic Association, European Economic Association, vol. 18(1), pages 266-301.
    21. Anja Roth, 2020. "How the provision of childcare affects attitudes towards maternal employment," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 156(1), pages 1-30, December.

    More about this item

    JEL classification:

    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpb:discus:424. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/cpbgvnl.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (email available below). General contact details of provider: https://edirc.repec.org/data/cpbgvnl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.