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The Unequal Motherhood Penalty: Maternal Preferences and Education

Author

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  • Carnicelli, Lauro

    (LABORE Labour Institute for Economic Research)

  • Morando, Greta

    (University of Sheffield)

Abstract

We study how maternal preferences interact with education to shape the motherhood penalty. Using rich Finnish registry data and the quasi-random gender of the firstborn child, we show that mothers across education groups display a mild preference for daughters, reflected in their fertility and parental leave choices. Yet this shared preference translates into divergent long-run outcomes. Ten years after birth, highly educated mothers face a 10\% larger earnings penalty if their firstborn is a son, whereas less educated mothers experience slightly higher penalties with daughters. These differences stem from distinct labor market adjustments: less educated mothers are marginally more likely to exit employment after having a daughter, while highly educated mothers with daughters disproportionately move into public-sector jobs, which offer a relative wage premium. Our findings demonstrate that similar parental preferences can generate contrasting long-term earnings dynamics across education groups, highlighting the role of maternal preferences and labor market sorting in shaping the motherhood penalty.

Suggested Citation

  • Carnicelli, Lauro & Morando, Greta, 2025. "The Unequal Motherhood Penalty: Maternal Preferences and Education," IZA Discussion Papers 18140, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp18140
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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
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets

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