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The Motherhood Wage Penalty in a Mediterranean Country: The Case of Spain

José Alberto Molina () and Victor Montuenga ()

Documentos de Trabajo from Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza

Abstract: We present evidence for the motherhood wage penalty in Spain as a representative Southern European Mediterranean country. We use the the European Community Household Panel (ECHP, 1994-2001) to estimate, from both pool and fixed-effects methods, a wage equation in terms of observed variables and other non-observed individual characteristics. The empirical results confirm that there is clear evidence of a wage penalty for Spanish working-women with children. Specifically, the fact that there is a birth in the family during the current year means that the woman loses 9% of her wage. We also find that, having one child living in the household means a significant loss in wages of 6%, having two children, almost 14% and having three or more, more than 15%.

Keywords: Fixed-effects estimation; Motherhood wage penalty; Spain (search for similar items in EconPapers)
Date: 2008-02
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