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Parenthood and gender inequality: Population-based evidence on the child penalty in Finland

Author

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  • Sieppi, Antti
  • Pehkonen, Jaakko

Abstract

This study presents evidence on the effect of parenthood on labor market outcomes in Finland. We use population-based data drawn from administrative registers and an event study design centered around the birth of the first child using the specification proposed in Kleven et al. (2019b). The study confirms that women encounter large short- and long-term child penalties in gross labor earnings and that penalties are associated with employment participation. Taxes and social security transfers considerably reduce the child penalty, which also varies by the number of children.

Suggested Citation

  • Sieppi, Antti & Pehkonen, Jaakko, 2019. "Parenthood and gender inequality: Population-based evidence on the child penalty in Finland," Economics Letters, Elsevier, vol. 182(C), pages 5-9.
    • Handle: RePEc:eee:ecolet:v:182:y:2019:i:c:p:5-9
    DOI: 10.1016/j.econlet.2019.05.034
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    More about this item

    Keywords

    Motherhood; Earnings; Employment; Child penalty; Income transfers;
    All these keywords.

    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
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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