Abstract
The motherhood wage penalty is often cited as a contributor towards the gender earnings gap. A common explanation involves women’s labor supply reductions after having children. Yet, the literature says little about whether mothers’ labor supply reductions are entirely voluntary. This study utilizes two US longitudinal panels to measure children’s impact on parent job loss. Mothers are significantly more likely than fathers to involuntarily lose their jobs. The gap is substantial, persists over time, is robust to various model specifications, exists among a host of demographic sub-samples, and is driven by gender differences in characteristic effects rather than levels.
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Data Availability
The data used in this article can be obtained from the website of the Bureau of Labor Statistics. Additional replication materials are available from the author upon request.
Notes
Taken from the St. Louis Federal Reserve Bank FRED data.
The 1985 proportion was extracted from the NLSY 1979 data used in this study. The 2015 data from the NLSY risks double counting of instances when employers offer both paid and unpaid leave, thus the 2015 proportion here is taken from the Bureau of Labor Statistics National Compensation Survey.
Yu and Hara (2021) measure wage changes before and after having children. While pay decreases for mothers and increases for fathers, the authors contend that employer discrimination accounts for the largest portion of the motherhood penalties and fatherhood premiums
Due to the NLSY structure, the job termination could have happened as recently as 1 month but also as distant as 2 years or more, depending on the NLSY wave
Respondents that voluntarily left their most recent job, including for pregnancy or other family reasons, as well as those who left due to plant closures, ending of seasonal or temporary jobs, or ending of programs, are excluded from the sample. In a later robustness check they are added to the negative response (indicator equals 0) pool.
Robustness checks later on expand the sample to all available waves of young people, as well as waves that draw equivalency in the proportion of parents.
In the results section I demonstrate the near equivalency between Logit marginal effects and OLS coefficients in these estimations.
Probit estimates confirm the Logit results.
A later robustness check expands these indicators to the 3 digit specification of occupations and industries, dramatically increasing the quantity of indicators while substantially reducing the number of observations found in each.
Interestingly, Glauber (2012) finds that the motherhood wage penalty is largest in female-dominated occupations.
Note that the 0.004 pp gap here is unconditional, whereas the 1.1 pp gap in column 1 of Table 5 is regression-adjusted.
Note here that NLSY97 waves cut off at 2015 as this was the most recent wave available to the author, and the NLSY79 waves are cut off at 1994 since including waves later than 1994 creates an even worse imbalance between the cohorts and begins to add workers beginning to age beyond typical child-bearing years.
Only pooled cross-section estimations, and not fixed effects, would converge with the vast quantity of controls that 3-digit occupations and industries create.
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Artz, B. Are Mothers More Likely Than Fathers to Lose Their jobs?. J Fam Econ Iss (2023). https://doi.org/10.1007/s10834-023-09923-x
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DOI: https://doi.org/10.1007/s10834-023-09923-x