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The child penalty in Sweden: evidence, trends, and child gender

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  • Sundberg, Anton

    (IFAU and Uppsala University)

Abstract

This paper examines the impact of parenthood on labor market outcomes for both men and women using population-wide annual income data from 1960 to 2021 in Sweden. First, I document the contemporary child penalties across several labor market outcomes. Second, I show that while the motherhood penalty in earnings declined significantly during the 1960s, 1970s, and early 1980s, the rate of decline slowed from the late 1980s onwards. Third, I identify a fatherhood penalty emerging since the 1980s, particularly pronounced among men in more gender-egalitarian households (proxied by the father’s share of parental leave) and among fathers who have sons relative to daughters.

Suggested Citation

  • Sundberg, Anton, 2024. "The child penalty in Sweden: evidence, trends, and child gender," Working Paper Series 2024:12, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    • Handle: RePEc:hhs:ifauwp:2024_012
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    References listed on IDEAS

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    1. 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.
    2. Håkan Selin, 2014. "The rise in female employment and the role of tax incentives. An empirical analysis of the Swedish individual tax reform of 1971," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 21(5), pages 894-922, October.
    3. Francine D. Blau & Lawrence M. Kahn, 2006. "The U.S. Gender Pay Gap in the 1990S: Slowing Convergence," ILR Review, Cornell University, ILR School, vol. 60(1), pages 45-66, October.
    4. Gunnar Andersson & Karsten Hank & Marit Rønsen & Andres Vikat, 2006. "Gendering family composition: Sex preferences for children and childbearing behavior in the Nordic countries," Demography, Springer;Population Association of America (PAA), vol. 43(2), pages 255-267, May.
    5. Michael Baker & Kevin Milligan, 2016. "Boy-Girl Differences in Parental Time Investments: Evidence from Three Countries," Journal of Human Capital, University of Chicago Press, vol. 10(4), pages 399-441.
    6. James W. Albrecht & Per-Anders Edin & Marianne Sundström & Susan B. Vroman, 1999. "Career Interruptions and Subsequent Earnings: A Reexamination Using Swedish Data," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 294-311.
    7. 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.
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    Keywords

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    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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