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Is There a Motherhood Wage Penalty in the Finnish Private Sector?

Author

Listed:
  • Napari, Sami
Abstract
Using data from the Finnish private sector, this paper shows that giving birth to a child has negative effects on the mothers wage. Analysis of the reasons for the wage penalty associated with motherhood suggests that the loss of human capital during the child-related career break is an important factor behind the motherhood wage penalty. The paper also finds some evidence that mothers selection into different types of firms than childless women may contribute to the wage penalty. Instead differences in unobserved time-invariant individual characteristics between mothers and childless women seem to be unimportant in explaining the motherhood wage penalty. Finally, there seems to be variation in the child-penalty across worker and firm characteristics. For example, the penalties are lower in the female-dominated industries than in the male-dominated industries. There is also variation in the motherhood wage penalty across the conditional wage distribution. Most notably, the large average wage penalties for mothers who spend longer periods at home taking care of their children appear to be driven by heavy penalties at the upper tail of the conditional wage distribution.

Suggested Citation

  • Napari, Sami, 2007. "Is There a Motherhood Wage Penalty in the Finnish Private Sector?," Discussion Papers 1107, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:dpaper:1107
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    File URL: http://www.etla.fi/wp-content/uploads/2012/09/dp1107.pdf
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    Citations

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    Cited by:

    1. Sami Napari, 2008. "The Early‐career Gender Wage Gap among University Graduates in the Finnish Private Sector," LABOUR, CEIS, vol. 22(4), pages 697-733, December.
    2. Jenni Kellokumpu, 2007. "Baby and Pay: The Family Gap in Finland," Working Papers 236, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    3. Tatiana Karabchuk, 2016. "The subjective well-being of women in Europe: children, work and employment protection legislation," Mind & Society: Cognitive Studies in Economics and Social Sciences, Springer;Fondazione Rosselli, vol. 15(2), pages 219-245, November.
    4. Martina Žofková & Dominik Stroukal, 2014. "Odhad mzdové srážky za mateřství v České republice [Estimating the Motherhood Wage Penalty in the Czech Republic]," Politická ekonomie, Prague University of Economics and Business, vol. 2014(5), pages 683-700.
    5. Merja Kauhanen & Sami Napari, 2010. "Wage Growth and Mobility Between and Within Firms by Gender and Education," Working Papers 260, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    6. Kellokumpu, Jenni, 2015. "Essays on work and fertility," Research Reports P69, VATT Institute for Economic Research.

    More about this item

    Keywords

    wages; mothers; human capital;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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