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Are children driving the gender wage gap? Comparative evidence from Poland and Hungary

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  • Anna Lovasz

    (Institute of Economics, Center for Economic and Regional Studies, Hungarian Academy of Sciences and Department of Economics, Eötvös Lorand University)

  • Ewa Cukrowska

    (Faculty of Economic Sciences - University of Warsaw)

Abstract

We examine how much children and responsibilities related with them contribute towards the divergence of men’s and women’s wages, and consequently, to the formation of the gender wage gap. To derive the relative contribution of gender specific wage inequalities caused by the parenthood to the overall gender wage gap, we provide a modification of standard Oaxaca-Blinder decomposition method, and correct simultaneously for selection into work and parenthood. Contrary to our expectations, the findings show that most of the gender wage inequality is due to the positive wage gap between men who do and do not have children and not due to the wage penalty incurred by mothers.

Suggested Citation

  • Anna Lovasz & Ewa Cukrowska, 2014. "Are children driving the gender wage gap? Comparative evidence from Poland and Hungary," Budapest Working Papers on the Labour Market 1404, Institute of Economics, Centre for Economic and Regional Studies.
  • Handle: RePEc:has:bworkp:1404
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    Cited by:

    1. Papuna Gogoladze, 2019. "Gender Income Gap Over Life-Cycle: Cross-Country Analysis," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 117, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    2. Magda, Iga & Cukrowska-Torzewska, Ewa, 2018. "Do Female Managers Help to Lower Within-Firm Gender Pay Gaps? Public Institutions vs. Private Enterprises," IZA Discussion Papers 12026, Institute of Labor Economics (IZA).
    3. Olga Takács & János Vincze, 2020. "The gender-dependent structure of wages in Hungary: results using machine learning techniques," CERS-IE WORKING PAPERS 2044, Institute of Economics, Centre for Economic and Regional Studies.
    4. Olga Takacs & Janos Vincze, 2019. "The gender pay gap in Hungary: new results with a new methodology," CERS-IE WORKING PAPERS 1924, Institute of Economics, Centre for Economic and Regional Studies.
    5. Anna Lovasz & Ewa Cukrowska-Torzewska, 2017. "The Impact of Parenthood on the Gender Wage Gap – a Comparative Analysis of 26 European Countries," Budapest Working Papers on the Labour Market 1715, Institute of Economics, Centre for Economic and Regional Studies.
    6. Landmesser Joanna Małgorzata, 2018. "The Use of Hazard Models for the Analysis of Income Inequalities in Poland," Folia Oeconomica Stetinensia, Sciendo, vol. 18(1), pages 144-156, June.
    7. Witkowska Dorota, 2018. "Does the Household Structure Influence Remuneration in Poland?," Econometrics. Advances in Applied Data Analysis, Sciendo, vol. 22(4), pages 24-42, December.
    8. Horie, Norio & Iwasaki, Ichiro & 岩﨑, 一郎, 2021. "Returns to Schooling in European Emerging Markets: A Meta-Analysis," CEI Working Paper Series 2020-11, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.

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    More about this item

    Keywords

    Gender Wage Gap; Family Gap; Motherhood Penalty; Wage Gap Decomposition;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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