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The Motherhood Wage Penalty: A Varieties of Capitalism Approach

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  • Erik Lundquist
  • Hanna Eklööf

Abstract

This paper aims to relate the issue of the Motherhood Wage Penalty to the institutional framework “Varieties of Capitalism.” Using data from the Luxembourg Income Study, we perform cross-national analyses on the discrepancy in wages between mothers with young children and females without children. The second step of the analysis entails four different measures with relevance to both the institutional framework and our applied gender focus. We find that when nations exhibit features in line with “coordinated market economies,” characterized by relatively stubborn employment protection, smaller degree of general inequality, more concentrated wage bargaining, and higher rate of unionization, mothers are relatively more penalized in monetary terms compared to “liberal market economies.” The results add valuable insight to the limited gender literature within the framework and propose follow-up questions for expanding the efforts of gendering the Varieties of Capitalism.

Suggested Citation

  • Erik Lundquist & Hanna Eklööf, 2017. "The Motherhood Wage Penalty: A Varieties of Capitalism Approach," LIS Working papers 710, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:liswps:710
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    References listed on IDEAS

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    1. Dominique Meurs & Ariane Pailhe & Sophie Ponthieux, 2010. "Child-related Career Interruptions and the Gender Wage Gap in France," Annals of Economics and Statistics, GENES, issue 99-100, pages 15-46.
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    3. Joshi, Heather & Paci, Pierella & Waldfogel, Jane, 1999. "The Wages of Motherhood: Better or Worse?," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 23(5), pages 543-564, September.
    4. Bianca Buligescu & Denis de Crombrugghe & Gülçin Menteşoğlu & Raymond Montizaan, 2009. "Panel estimates of the wage penalty for maternal leave," Oxford Economic Papers, Oxford University Press, vol. 61(suppl_1), pages 35-55, April.
    5. Ian Lundberg, 2012. "Gender-Differentiated Effects of Parenthood on Earnings: Understanding Cross-National Variation in the Motherhood Penalty and Fatherhood Bonus," LIS Working papers 576, LIS Cross-National Data Center in Luxembourg.
    6. Tanya Livermore & Joan Rodgers & Peter Siminski, 2011. "The Effect of Motherhood on Wages and Wage Growth: Evidence for Australia," The Economic Record, The Economic Society of Australia, vol. 87(s1), pages 80-91, September.
    7. Deborah J. Anderson & Melissa Binder & Kate Krause, 2003. "The Motherhood Wage Penalty Revisited: Experience, Heterogeneity, Work Effort, and Work-Schedule Flexibility," ILR Review, Cornell University, ILR School, vol. 56(2), pages 273-294, January.
    8. Petersen, Trond & Penner, Andrew M. & Høgnsnes, Geir, 2010. "The Within-Job Motherhood Wage Penalty in Norway, 1979–1996," Institute for Research on Labor and Employment, Working Paper Series qt4h8849rq, Institute of Industrial Relations, UC Berkeley.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Varieties of Capitalism; Motherhood Wage Penalty; Gender Economics; Institutional theory; Labor Economics;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • P10 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - General

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