Racial Difference in Child Penalty

Jiaqi Li
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Jiaqi Li: Department of Economics, The University of Warwick

The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics

Abstract: This paper documents large racial differences in the child penalty. Black women experience a significantly smaller reduction in labour supply and earnings following childbirth than white women. Furthermore, the racial difference in child penalties is driven by high-wage women, whereas black and white women with low wages have similar child penalties. In addition, household non-labour income can explain some long-run racial differences. Finally, the paper rules out economic, demographic variables, or work-related gender attitudes as the main mechanisms to drive such substantial racial differences in child penalties, leaving preference and discrimination as the main explanations.

Keywords: Race; Child Penalty; Labor Supply; Gender Norms; Non-labour Income JEL Classification: J13; J15; J16; J22 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-dem, nep-gen, nep-pke and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:wrk:warwec:1382

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