Are children driving the gender wage gap? Comparative evidence from Poland and Hungary

Anna Lovasz and Ewa Cukrowska-Torzewska

No 1404, Budapest Working Papers on the Labour Market from Institute of Economics, Centre for Economic and Regional Studies

Abstract: We examine how much children and responsibilities related with them contribute towards the divergence of men’s and women’s wages, and consequently, to the formation of the gender wage gap. To derive the relative contribution of gender specific wage inequalities caused by the parenthood to the overall gender wage gap, we provide a modification of standard Oaxaca-Blinder decomposition method, and correct simultaneously for selection into work and parenthood. Contrary to our expectations, the findings show that most of the gender wage inequality is due to the positive wage gap between men who do and do not have children and not due to the wage penalty incurred by mothers.

Keywords: Gender Wage Gap; Family Gap; Motherhood Penalty; Wage Gap Decomposition (search for similar items in EconPapers)
JEL-codes: J13 J22 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2014-07
New Economics Papers: this item is included in nep-tra
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Citations: View citations in EconPapers (2)

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Working Paper: Are children driving the gender wage gap? Comparative evidence from Poland and Hungary (2014)
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