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The Motherhood Wage Penalty in a Mediterranean Country: The Case of Spain

Author

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  • José Alberto Molina

    (Department of Economic Analysis. University of Zaragoza (Spain) and IZA (Germany))

  • Víctor M. Montuenga

    (Department of Economic Analysis. University of Zaragoza (Spain))

Abstract

We present evidence for the motherhood wage penalty in Spain as a representative Southern European Mediterranean country. We use the the European Community Household Panel (ECHP, 1994-2001) to estimate, from both pool and fixed-effects methods, a wage equation in terms of observed variables and other non-observed individual characteristics. The empirical results confirm that there is clear evidence of a wage penalty for Spanish working-women with children. Specifically, the fact that there is a birth in the family during the current year means that the woman loses 9% of her wage. We also find that, having one child living in the household means a significant loss in wages of 6%, having two children, almost 14% and having three or more, more than 15%.

Suggested Citation

  • José Alberto Molina & Víctor M. Montuenga, 2008. "The Motherhood Wage Penalty in a Mediterranean Country: The Case of Spain," Documentos de Trabajo dt2008-02, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
  • Handle: RePEc:zar:wpaper:dt2008-02
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    More about this item

    Keywords

    Fixed-effects estimation; Motherhood wage penalty; Spain;
    All these keywords.

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • D10 - Microeconomics - - Household Behavior - - - General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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