IDEAS home Printed from https://ideas.repec.org/p/drm/wpaper/2019-13.html
   My bibliography  Save this paper

Having a child? Here is the bill - Parenthood, Earnings and Careers in an Internal Labor

Author

Listed:
  • Dominique Meurs
  • Elena Vilar
  • Claudio Lucifora

Abstract

Using a unique 12-years panel of personnel records from a large French company, we ndthat becoming mother (extensive fertility margins) largely a ects labor market outcomes.Instead, fatherhood does not signi cantly impact on men's wages or careers. An event studyapproach with the use of non-parents as control group enables us to show that, prior tochildbirth, future mothers' earnings are in line with that of non-mothers. However, one yearafter birth, they start to fall, reaching -9% in total pay and -30% in individual bonuses.This drop is persistent: 8 years after childbirth there is no evidence of a catching-up trend.Mothers also have lower chances to climb-up the hierarchy of the rm and be promoted tomanagerial positions. A decomposition of the motherhood penalty shows that these \missedpromotions", likely due to an increase in absenteeism during the child's pre-school age, arethe main determinants of mothers' lower outcomes within the rm.

Suggested Citation

  • Dominique Meurs & Elena Vilar & Claudio Lucifora, 2019. "Having a child? Here is the bill - Parenthood, Earnings and Careers in an Internal Labor," EconomiX Working Papers 2019-13, University of Paris Nanterre, EconomiX.
    • Handle: RePEc:drm:wpaper:2019-13
    as

    Download full text from publisher

    File URL: https://economix.fr/pdf/dt/2019/WP_EcoX_2019-13.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Christian Pfeifer, 2010. "Determinants of Promotions in an Internal Labour Market," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 62(4), pages 342-358, October.
    2. Lazear, Edward P & Rosen, Sherwin, 1981. "Rank-Order Tournaments as Optimum Labor Contracts," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 841-864, October.
    3. Patricia Cortés & José Tessada, 2011. "Low-Skilled Immigration and the Labor Supply of Highly Skilled Women," American Economic Journal: Applied Economics, American Economic Association, vol. 3(3), pages 88-123, July.
    4. Bertrand, Marianne, 2011. "New Perspectives on Gender," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 17, pages 1543-1590, Elsevier.
    5. Simonsen, Marianne & Skipper, Lars, 2012. "The family gap in wages: What wombmates reveal," Labour Economics, Elsevier, vol. 19(1), pages 102-112.
    6. Lionel Wilner, 2016. "Worker-firm matching and the parenthood pay gap: Evidence from linked employer-employee data," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(4), pages 991-1023, October.
    7. Carlos Dobkin & Amy Finkelstein & Raymond Kluender & Matthew J. Notowidigdo, 2018. "The Economic Consequences of Hospital Admissions," American Economic Review, American Economic Association, vol. 108(2), pages 308-352, February.
    8. Angrist, Joshua D & Evans, William N, 1998. "Children and Their Parents' Labor Supply: Evidence from Exogenous Variation in Family Size," American Economic Review, American Economic Association, vol. 88(3), pages 450-477, June.
    9. Francine D. Blau & Anne E. Winkler, 2017. "Women, Work, and Family," NBER Working Papers 23644, National Bureau of Economic Research, Inc.
    10. Felfe, Christina, 2012. "The motherhood wage gap: What about job amenities?," Labour Economics, Elsevier, vol. 19(1), pages 59-67.
    11. Millimet, Daniel L, 2000. "The Impact of Children on Wages, Job Tenure, and the Division of Household Labour," Economic Journal, Royal Economic Society, vol. 110(462), pages 139-157, March.
    12. Henrik Kleven & Camille Landais & Jakob Egholt Søgaard, 2019. "Children and Gender Inequality: Evidence from Denmark," American Economic Journal: Applied Economics, American Economic Association, vol. 11(4), pages 181-209, October.
    13. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    14. Claudia Goldin, 2014. "A Grand Gender Convergence: Its Last Chapter," American Economic Review, American Economic Association, vol. 104(4), pages 1091-1119, April.
    15. Rosen, Sherwin, 1986. "Prizes and Incentives in Elimination Tournaments," American Economic Review, American Economic Association, vol. 76(4), pages 701-715, September.
    16. 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).
    17. Deborah J. Anderson & Melissa Binder & Kate Krause, 2003. "The Motherhood Wage Penalty Revisited: Experience, Heterogeneity, Work Effort, and Work-Schedule Flexibility," ILR Review, Cornell University, ILR School, vol. 56(2), pages 273-294, January.
    18. Petter Lundborg & Erik Plug & Astrid Würtz Rasmussen, 2017. "Can Women Have Children and a Career? IV Evidence from IVF Treatments," American Economic Review, American Economic Association, vol. 107(6), pages 1611-1637, June.
    19. Sara Cools & Marte Strøm, 2016. "Parenthood wage penalties in a double income society," Review of Economics of the Household, Springer, vol. 14(2), pages 391-416, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lucifora, Claudio & Meurs, Dominique & Villar, Elena, 2021. "The “mommy track” in the workplace. Evidence from a large French firm," Labour Economics, Elsevier, vol. 72(C).
    2. Petrongolo, Barbara & Ronchi, Maddalena, 2020. "Gender gaps and the structure of local labor markets," Labour Economics, Elsevier, vol. 64(C).
    3. Nieto, Adrián, 2021. "Native-immigrant differences in the effect of children on the gender pay gap," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 654-680.
    4. 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.
    5. Estefanía Galván & Cecilia García-Peñalosa, 2021. "Interactions amongst gender norms: Evidence from US couples," Documentos de Trabajo (working papers) 21-15, Instituto de Economía - IECON.
    6. Chu, Yu-Wei Luke & Cuffe, Harold E & Doan, Nguyen, 2021. "Motherhood Employment Penalty and Gender Wage Gap Across Countries: 1990–2010," Working Paper Series 9446, Victoria University of Wellington, School of Economics and Finance.
    7. Eliane Badaoui & Eleonora Matteazzi & Vincenzo Prete, 2024. "The role of non‐base compensation in explaining the motherhood wage gap: Evidence from Italy," Kyklos, Wiley Blackwell, vol. 77(4), pages 873-894, November.
    8. Berniell, Inés & Berniell, Lucila & Mata, Dolores de la & Edo, María & Marchionni, Mariana, 2021. "Gender gaps in labor informality: The motherhood effect," Journal of Development Economics, Elsevier, vol. 150(C).
    9. Strittmatter, Anthony & Wunsch, Conny, 2021. "The Gender Pay Gap Revisited with Big Data: Do Methodological Choices Matter?," Working papers 2021/05, Faculty of Business and Economics - University of Basel.
    10. Jon H Fiva & Max-Emil M King, 2024. "Child Penalties in Politics," The Economic Journal, Royal Economic Society, vol. 134(658), pages 648-670.
    11. Anne Ardila Brenøe, 2018. "Origins of gender norms: sibling gender composition and women's choice of occupation and partner," ECON - Working Papers 294, Department of Economics - University of Zurich.
    12. Arntz, Melanie & Ben Yahmed, Sarra & Berlingieri, Francesco, 2018. "Working from Home: Heterogenous Effects on Hours Worked and Wages," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181630, Verein für Socialpolitik / German Economic Association.
    13. Barigozzi, Francesca & Cremer, Helmuth & Roeder, Kerstin, 2018. "Women's career choices, social norms and child care policies," Journal of Public Economics, Elsevier, vol. 168(C), pages 162-173.
    14. Henrik Kleven & Camille Landais & Jakob Egholt Søgaard, 2019. "Children and Gender Inequality: Evidence from Denmark," American Economic Journal: Applied Economics, American Economic Association, vol. 11(4), pages 181-209, October.
    15. Carolina Castagnetti & Luisa Rosti & Marina Töpfer, 2020. "Discriminate me — If you can! The disappearance of the gender pay gap among public‐contest selected employees in Italy," Gender, Work and Organization, Wiley Blackwell, vol. 27(6), pages 1040-1076, November.
    16. repec:hal:journl:hal-04792769 is not listed on IDEAS
    17. Hofmarcher, Thomas & Plug, Erik, 2022. "Specialization in same-sex and different-sex couples," Labour Economics, Elsevier, vol. 77(C).
    18. Simon Rabaté & Sara Rellstab, 2022. "What Determines the Child Penalty in the Netherlands? The Role of Policy and Norms," De Economist, Springer, vol. 170(2), pages 195-229, May.
    19. Elise Coudin & Sophie Maillard & Maxime Tô, 2018. "Family, Firms and the Gender Wage Gap in France," Working Papers 2018-09, Center for Research in Economics and Statistics.
    20. Sarah Louise Jewell & Giovanni Razzu & Carl Singleton, 2020. "Who Works for Whom and the UK Gender Pay Gap," British Journal of Industrial Relations, London School of Economics, vol. 58(1), pages 50-81, March.
    21. Gutierrez, Federico H., 2018. "Commuting Patterns, the Spatial Distribution of Jobs and the Gender Pay Gap in the U.S," GLO Discussion Paper Series 282, Global Labor Organization (GLO).

    More about this item

    Keywords

    Children Motherhood penalty Gender inequalities Event study;

    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
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

    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:drm:wpaper:2019-13. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Valerie Mignon (email available below). General contact details of provider: https://edirc.repec.org/data/modemfr.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.