Abstract
We present evidence for the motherhood wage penalty in Spain as a representative Southern European Mediterranean country. We used 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 was a birth in the family during the current year means that the woman lost 9% of her wage. We also found that, having one child living in the household means a significant loss in wages of 6%, having two children, almost a 14% loss, and having three or more children, in a more than 15% loss.
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Notes
Other penalties derived from motherhood from a family perspective include the clear trade-off between work and childcare (Abroms and Goldscheider 2002; Baydar et al. 2007; Cohen and Bianchi 1999; Craig 2007; Perry-Jenkins et al. 2000) and limitations to managerial and academic career paths (Comer and Stites-Doe 2006; Edwards 2005; Elliot 2003; England 1982; Finkel and Olswang 1996; Golden 2008; Polacheck 1981; Wallace 2008), although governments and social agencies try to minimize the effects of all such penalties (Baum 2003; Berger et al. 2005; Berger and Waldfogel 2004; Livermone and Powers 2006; Radey 2008; Tomohara and Lee 2007).
Sigle-Rushton and Waldfogel (2007a, 2007b) analyze lifecycle earnings, according to which the largest differences in earnings are observed in countries like The Netherlands and Germany, and the smallest in Scandinavia, with the US and the United Kingdom situated in an intermediate position. The explanation for a different ordering in short-run wages, compared to lifetime earnings, relies on both the longer periods out-of-work by mothers, and on the higher protection that non-employed women receive in the Central European countries, compared to those living in Anglo-American countries.
Given the fact that the existence of children at home can affect the number of hours a woman works, we prefer to present the variable that collects pay data in terms of wage per hour rather than annual or monthly earnings.
With respect to these variables of having children, the number of children at home younger than 14 was also considered, although the results are not presented given the fact that they did not substantially change with respect to those obtained using the two initial indicators. In addition, we introduced the two original measures simultaneously in order to control for the influence of having children in the period under study. The combined effect of both measures is similar to that obtained in Tables 3 and 4.
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Acknowledgments
This paper was partially written while José Alberto Molina was Visiting Fellow at the Department of Economics of the University of Warwick (UK), to which he would like to express his thanks for the hospitality and facilities provided. An earlier version of this paper was presented at the Spanish Applied Economics Meeting-2006 (Jaen, Spain), as well as at the I Workshop on Economics of the Family-2006 (Zaragoza, Spain), with all the comments made by the participants, particularly those of Ian Walker, and those of anonymous referees, being highly appreciated. Finally, the authors would like to express their thanks for the financial support provided by the Spanish Ministry of Education and Science and FEDER (Project SEJ2005-06522) and by the BBVA Foundation. The usual disclaimer applies.
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Molina, J.A., Montuenga, V.M. The Motherhood Wage Penalty in Spain. J Fam Econ Iss 30, 237–251 (2009). https://doi.org/10.1007/s10834-009-9153-z
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DOI: https://doi.org/10.1007/s10834-009-9153-z