Inflation Forecasting in Turbulent Times

Nadia Steiber, Lara Lebedinski, Bernd Liedl and Rudolf Winter-Ebmer
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Nadia Steiber: University of Vienna and Institute for Advanced Studies Vienna, Austria
Lara Lebedinski: University of Vienna
Bernd Liedl: University of Vienna
Rudolf Winter-Ebmer: Johannes Kepler University, Linz and Institute for Advanced Studies Vienna, Austria

No 57, IHS Working Paper Series from Institute for Advanced Studies

Abstract: This study contributes to the literature on how parenthood affects the within-couple gender earnings gap. It examines how this 'child penalty' on women's earnings varies with the education level of both partners and the woman’s relative education within the couple. Using Austrian register data on 268,156 heterosexual couples who entered parenthood between 1990 and 2007, and an event study design that uses the couple as the unit of analysis, we examine the heterogeneity in the magnitude of the child penalty. Our stratified analyses show that the average child penalty is smaller for women in hypogamous couples, where she is more educated than her partner, than for women in homogamous or hypergamous unions, where the male partner is equally or more educated. These results are confirmed by multivariate regressions that control for compositional effects and disentangle the effects of partners' level of education from the impact of the woman's relative education within the couple. Furthermore, examining detailed educational pairings, rather than lumping couples into three broad types, reveals a larger variation in the size of the child penalty: tertiary-educated women in hypogamous unions incur substantially smaller penalties compared to all other educational pairings, while women in hypergamous unions with a tertiary-educated man face particularly large penalties. Supplementary analyses suggest that the reduced child penalties for tertiary-educated women in hypogamous unions do not reflect a selection of men with low earning potential into this union type.

Keywords: Child penalty; hypogamy; gender earnings gap (search for similar items in EconPapers)
JEL-codes: D10 J12 J13 J16 J22 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2024-10
New Economics Papers: this item is included in nep-lab and nep-mon
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https://irihs.ihs.ac.at/id/eprint/7072 First version, 2024 (application/pdf)

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