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

Dominique Meurs (), Elena Vilar and Claudio Lucifora ()

No 2019-13, EconomiX Working Papers from University of Paris Nanterre, EconomiX

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.

Keywords: Children; Motherhood; penalty; Gender; inequalities; Event; study (search for similar items in EconPapers)
JEL-codes: J13 J16 J31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur
Date: 2019
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