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

Author

Listed:
  • 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

    as
    1. 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.
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    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. 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.
    5. 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.
    6. 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.
    7. Henrik Kleven & Camille Landais & Jakob Egholt Søgaard, 2021. "Does Biology Drive Child Penalties? Evidence from Biological and Adoptive Families," American Economic Review: Insights, American Economic Association, vol. 3(2), pages 183-198, June.
    8. 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.
    9. 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.
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    Cited by:

    1. Jessen, Jonas & Kinne, Lavinia & Battisti, Michele, 2026. "Child penalties in labour market skills," European Economic Review, Elsevier, vol. 184(C).
    2. Gan, Renren & Jongen, Egbert L. W. & Rabaté, Simon & Terpstra, Bo, 2025. "The Evolution of the Child Penalty and Gender-Related Inequality in the Netherlands, 1989–2022," IZA Discussion Papers 18158, IZA Network @ LISER.

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    More about this item

    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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