IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/24173.html
   My bibliography  Save this paper

Parenthood, Family Friendly Workplaces, and the Gender Gaps in Early Work Careers

Author

Listed:
  • V. Joseph Hotz
  • Per Johansson
  • Arizo Karimi

Abstract

We consider the role that workplace attributes play in accounting for the divergence in the careers of women and men, with the onset of parenthood. We exploit matched employer-employee data from Sweden to characterize a model-based index of workplace “family friendliness” and analyze the effect of more family friendly workplaces on the career gaps between mothers and fathers. We find that exogenously moving mothers to more family friendly workplaces would raise their wages and labor income. In contrast, such moves would entail reductions in the same outcomes for fathers, resulting in sizeable improvements in the parental gender gap in wages and income. At the same time, working in more family friendly workplaces would not reduce the penalty to wage rates earned by women with their transition to motherhood (i.e., the motherhood penalty), but it would reduce the motherhood penalty to earned income by facilitating mothers working more hours. Furthermore, the benefits of family friendly workplaces appear to come at the expense of the occupational skill progression of mothers relative to non-mothers, impeding mothers’ ability to climb career ladders over the longer run. Finally, using auxiliary data based on a survey, we find that jobs – as defined by our index – are more substitutable for one another in family friendly workplaces. This substitutability of workers in more family friendly workplaces appears to be the mechanism that facilitates mothers’ ability to balance work and family responsibilities in such workplaces. At the same time, it also may partially explain our finding that more family friendly workplaces slow mothers’ occupational skill-progression.

Suggested Citation

  • V. Joseph Hotz & Per Johansson & Arizo Karimi, 2017. "Parenthood, Family Friendly Workplaces, and the Gender Gaps in Early Work Careers," NBER Working Papers 24173, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:24173
    Note: CH LS
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w24173.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. David Card & Ana Rute Cardoso & Joerg Heining & Patrick Kline, 2018. "Firms and Labor Market Inequality: Evidence and Some Theory," Journal of Labor Economics, University of Chicago Press, vol. 36(S1), pages 13-70.
    2. Fitzenberger, Bernd & Sommerfeld, Katrin & Steffes, Susanne, 2013. "Causal effects on employment after first birth — A dynamic treatment approach," Labour Economics, Elsevier, vol. 25(C), pages 49-62.
    3. Christina Felfe, 2009. "The Willingness to Pay for Job Amenities: Evidence from Mothers' Return to Work," CESifo Working Paper Series 2743, CESifo Group Munich.
    4. Nikolay Angelov & Per Johansson & Erica Lindahl, 2016. "Parenthood and the Gender Gap in Pay," Journal of Labor Economics, University of Chicago Press, vol. 34(3), pages 545-579.
    5. Kevin Lang & Sumon Majumdar, 2004. "The Pricing Of Job Characteristics When Markets Do Not Clear: Theory And Policy Implications," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(4), pages 1111-1128, November.
    6. Blau, Francine D & Kahn, Lawrence M, 1996. "Wage Structure and Gender Earnings Differentials: An International Comparison," Economica, London School of Economics and Political Science, vol. 63(250), pages 29-62, Suppl..
    7. Ana Rute Cardoso & Paulo Guimarães & Pedro Portugal, 2016. "What drives the gender wage gap? A look at the role of firm and job-title heterogeneity," Oxford Economic Papers, Oxford University Press, vol. 68(2), pages 506-524.
    8. David Card & Ana Rute Cardoso & Patrick Kline, 2016. "Bargaining, Sorting, and the Gender Wage Gap: Quantifying the Impact of Firms on the Relative Pay of Women," The Quarterly Journal of Economics, Oxford University Press, vol. 131(2), pages 633-686.
    9. Isaac Sorkin, 2018. "Ranking Firms Using Revealed Preference," The Quarterly Journal of Economics, Oxford University Press, vol. 133(3), pages 1331-1393.
    10. Ghazala Azmat & Rosa Ferrer Zarzuela, 2012. "Gender gaps in performance: Evidence from young lawyers," Economics Working Papers 1300, Department of Economics and Business, Universitat Pompeu Fabra, revised Oct 2015.
    11. Claudia Goldin, 2014. "A Grand Gender Convergence: Its Last Chapter," American Economic Review, American Economic Association, vol. 104(4), pages 1091-1119, April.
    12. Erling Barth & Alex Bryson & James C. Davis & Richard Freeman, 2016. "It's Where You Work: Increases in the Dispersion of Earnings across Establishments and Individuals in the United States," Journal of Labor Economics, University of Chicago Press, vol. 34(S2), pages 67-97.
    13. Pertold-Gebicka, Barbara & Pertold, Filip & Datta Gupta, Nabanita, 2016. "Employment Adjustments around Childbirth," IZA Discussion Papers 9685, Institute of Labor Economics (IZA).
    14. Peter Arcidiacono & Robert A. Miller, 2011. "Conditional Choice Probability Estimation of Dynamic Discrete Choice Models With Unobserved Heterogeneity," Econometrica, Econometric Society, vol. 79(6), pages 1823-1867, November.
    15. Tanja Van Der Lippe & Jacques J. Siegers, 1994. "Division of Household and Paid Labour between Partners: Effects of Relative Wage Rates and Social Norms," Kyklos, Wiley Blackwell, vol. 47(1), pages 109-136, February.
    16. repec:hrv:faseco:33973831 is not listed on IDEAS
    17. Barth, Erling & Pekkala Kerr, Sari & Olivetti, Claudia, 2017. "The Dynamics of Gender Earnings Differentials: Evidence from Establishment Data," IZA Discussion Papers 10974, Institute of Labor Economics (IZA).
    18. Bonilla Roberto & Burdett Kenneth, 2010. "On-the-Job Search and Labor Market Equilibrium," The B.E. Journal of Macroeconomics, De Gruyter, vol. 10(1), pages 1-28, March.
    19. Florence Jaumotte, 2004. "Labour Force Participation of Women: Empirical Evidence on The Role of Policy and Other Determinants in OECD Countries," OECD Economic Studies, OECD Publishing, vol. 2003(2), pages 51-108.
    20. Christina Felfe, 2012. "The Willingness to Pay for Job Amenities: Evidence from Mothers' Return to Work," ILR Review, Cornell University, ILR School, vol. 65(2), pages 427-454, April.
    21. Laura Hospido, 2009. "Gender differences in wage growth and job mobility of young workers in Spain," Investigaciones Economicas, Fundación SEPI, vol. 33(1), pages 5-37, January.
    22. Gary Chamberlain, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Oxford University Press, vol. 47(1), pages 225-238.
    23. Claudia Goldin & Lawrence F. Katz, 2016. "A Most Egalitarian Profession: Pharmacy and the Evolution of a Family-Friendly Occupation," Journal of Labor Economics, University of Chicago Press, vol. 34(3), pages 705-746.
    24. Lena Hensvik, 2012. "Competition, Wages and Teacher Sorting: Lessons Learned from a Voucher Reform," Economic Journal, Royal Economic Society, vol. 122(561), pages 799-824, June.
    25. Flabbi, Luca & Moro, Andrea, 2012. "The effect of job flexibility on female labor market outcomes: Estimates from a search and bargaining model," Journal of Econometrics, Elsevier, vol. 168(1), pages 81-95.
    26. Cortes, Patricia & Pan, Jessica, 2016. "When Time Binds: Returns to Working Long Hours and the Gender Wage Gap among the Highly Skilled," IZA Discussion Papers 9846, Institute of Labor Economics (IZA).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bütikofer, Aline & Jensen, Sissel & Salvanes, Kjell G., 2018. "The role of parenthood on the gender gap among top earners," European Economic Review, Elsevier, vol. 109(C), pages 103-123.
    2. Todd Stinebrickner & Ralph Stinebrickner & Paul Sullivan, 2018. "Job Tasks and the Gender Wage Gap among College Graduates," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 20183, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
    3. Bana, Sarah & Bedard, Kelly & Rossin-Slater, Maya & Stearns, Jenna, 2018. "Unequal Use of Social Insurance Benefits: The Role of Employers," IZA Discussion Papers 11882, Institute of Labor Economics (IZA).
    4. Abrar Reshid, Abdulaziz, 2017. "The gender gap in early career wage growth: the role of Children, job mobility and occupational mobility," Working Paper Series 2017:5, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    5. 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.
    6. Arntz, Melanie & Ben Yahmed, Sarra & Berlingieri, Francesco, 2019. "Working from home: Heterogeneous effects on hours worked and wages," ZEW Discussion Papers 19-015, ZEW - Leibniz Centre for European Economic Research.
    7. Gallen, Yana & Lesner, Rune V. & Vejlin, Rune, 2019. "The labor market gender gap in Denmark: Sorting out the past 30 years," Labour Economics, Elsevier, vol. 56(C), pages 58-67.

    More about this item

    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
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:24173. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/nberrus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.