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

Antti Sieppi and Jaakko Pehkonen

Economics Letters, 2019, vol. 182, issue C, 5-9

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.

Keywords: Motherhood; Earnings; Employment; Child penalty; Income transfers (search for similar items in EconPapers)
JEL-codes: J13 J16 J21 J22 J31 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (34)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:182:y:2019:i:c:p:5-9

DOI: 10.1016/j.econlet.2019.05.034

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