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The Evolution of the Child Penalty and Gender-Related Inequality in the Netherlands, 1989–2022

Author

Listed:
  • Gan, Renren

    (Leiden University)

  • Jongen, Egbert L. W.

    (Leiden University)

  • Rabaté, Simon

    (French Institute of Demographic Studies (Ined))

  • Terpstra, Bo

    (Leiden University)

Abstract

We study the evolution of the child penalty and gender-related inequality in the Netherlands. We use administrative panel data from 1989 to 2022 in an extension of the event study approach used in Kleven et al. (2019b). We document a substantial decline in child penalties (in earnings) for first-time mothers from 60% in the early 1990s to 35% in the 2010s. This decline is much larger than in the handful of other countries documented so far. However, looking at subperiods, we also find that the decline in the child penalty in the Netherlands has stalled in the mid 2000s, despite a steep rise in spending on formal childcare. Next, we decompose the gender-related inequality for parents into inequality related to children, education, migration background and a residual. We find that overall gender-related inequality and child-related gender inequality decline in parallel over time. The role of education and migration background is small and becomes less important over time. Hence, a substantial residual remains, and cannot be attributed to the aforementioned factors. We also show that the event-time window used is crucial for the contribution of the child penalty to the evolution of gender inequality.

Suggested Citation

  • 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, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp18158
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    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • 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

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