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Why Do the Earnings of Male and Female Graduates Diverge? The Role of Motherhood and Job Dynamics

Author

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  • Doris, Aedin

    (National University of Ireland, Maynooth)

  • O'Neill, Donal

    (National University of Ireland, Maynooth)

  • Sweetman, Olive

    (National University of Ireland, Maynooth)

Abstract

This paper explores gender wage dynamics using an administrative dataset covering Irish graduate earnings from 2010-2020. Our data allows us to look at a broad range of degrees and compare workers who are identical in important observable characteristics. We find that although male and female graduates have similar returns to study field immediately after graduation, a substantial gap soon emerges. This is particularly true when considering women with children and is driven by a 27 percent fall in earnings immediately after childbirth. We find no striking differences between fields of study; there is a substantial and persistent motherhood effect for all field groupings. We examine and dismiss the possibility that the gender difference in earnings dynamics is driven by job mobility; in fact, almost all of the difference is accounted for by changes within a job. Although there is a large and persistent reduction in hours of work after childbirth, this does not seem to explain all of the reduction in earnings.

Suggested Citation

  • Doris, Aedin & O'Neill, Donal & Sweetman, Olive, 2022. "Why Do the Earnings of Male and Female Graduates Diverge? The Role of Motherhood and Job Dynamics," IZA Discussion Papers 15805, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15805
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. Albrecht, James & Bronson, Mary Ann & Thoursie, Peter Skogman & Vroman, Susan, 2018. "The career dynamics of high-skilled women and men: Evidence from Sweden," European Economic Review, Elsevier, vol. 105(C), pages 83-102.
    4. Albrecht, James & Bronson, Mary Ann & Thoursie, Peter Skogman & Vroman, Susan, 2018. "Reprint of: The career dynamics of high-skilled women and men: Evidence from Sweden," European Economic Review, Elsevier, vol. 109(C), pages 83-102.
    5. 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.
    6. Aedín Doris & Donal O'Neill & Olive Sweetman, 2020. "How Important are Firms in Explaining Wage Changes During a Recession?," Economica, London School of Economics and Political Science, vol. 87(345), pages 282-298, January.
    7. Philip Rosenbaum, 2021. "Pregnancy or motherhood cost? A comparison of the child penalty for adopting and biological parents," Applied Economics, Taylor & Francis Journals, vol. 53(29), pages 3408-3422, June.
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    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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