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Child Penalties and Financial Incentives: Exploiting Variation along the Wage distribution

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  • Pierre PORA

    (Insee-Crest.)

  • Lionel WILNER

    (Insee-Crest.)

Abstract

We relate women's labor earnings losses due to motherhood to their prechildbirth rank in the distribution of hourly wages. Using French administrative data, we show that these \child penalties" decrease steeply along the distribution; by contrast, the related hourly wage losses are fairly homogeneous. Low-wage mothers opt out of the labor market or reduce their working hours more frequently; the magnitude of such responses is consistently monotonic along the distribution. This empirical evidence highlights the relevance of financial incentives and suggests that child penalties arise from decisions based on specialization gains rather than on gender differences in preferences or on gender norms.

Suggested Citation

  • Pierre PORA & Lionel WILNER, 2019. "Child Penalties and Financial Incentives: Exploiting Variation along the Wage distribution," Working Papers 2019-17, Center for Research in Economics and Statistics.
  • Handle: RePEc:crs:wpaper:2019-17
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    Cited by:

    1. Francesca Barigozzi & Helmuth Cremer & Emmanuel Thibault, 2023. "The Motherhood Wage and Income Traps," CESifo Working Paper Series 10380, CESifo.
    2. Artmann, Elisabeth & Oosterbeek, Hessel & van der Klaauw, Bas, 2022. "Household specialization and the child penalty in the Netherlands," Labour Economics, Elsevier, vol. 78(C).
    3. Stephen Bazen & Xavier Joutard & Hélène Périvier, 2021. "Measuring the Child Penalty Early in a Career," SciencePo Working papers Main hal-03451099, HAL.
    4. Bazen, Stephen & Joutard, Xavier & Périvier, Hélène, 2021. "Measuring the Child Penalty Early in a Career: The Case of Young Adults in France," IZA Discussion Papers 14763, Institute of Labor Economics (IZA).
    5. Pierre Pora, 2020. "Keep Working and Spend Less? Collective Childcare and Parental Earnings in France," Working Papers hal-04159681, HAL.
    6. Alicia Quinto & Laura Hospido & Carlos Sanz, 2021. "The child penalty: evidence from Spain," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 12(4), pages 585-606, December.
    7. 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.
    8. 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.

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    More about this item

    Keywords

    Gender pay gap; child penalties; labor supply; difference-in-difference; wage distribution.;
    All these keywords.

    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
    • 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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