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Parenthood and labour market outcomes

Author

Listed:
  • Isabelle Sin

    (Motu Economic and Public Policy Research)

  • Kabir Dasgupta

    (Auckland University of Technology)

  • Gail Pacheco

    (Auckland University of Technology)

Abstract
This paper is an initial exploration of what we can learn regarding the drivers of the gender pay gap in New Zealand from combining administrative wage data, birth records, and survey data on hours worked and earnings. Our particular focus is the role of parenthood penalties in this pay gap. In NZ, as internationally, the gender pay gap is larger among parents than non-parents, though the mechanisms driving this relationship are not entirely clear. We use administrative wage data to describe the distribution of how long women are out of paid employment after having their first child and how this differs with pre-parenthood income. We then look at employment rates and wage earnings among employed women each month in the five years before and ten years after birth of their first child. We also compare women who spend different lengths of time out of employment both overall and within each pre-parenthood earnings quartile. Although this does not strictly isolate the causal effect of length of time out of employment on subsequent monthly earnings, it does show how, within earnings quartiles, women who return quickly to work increase their earnings lead over those who return more slowly.

Suggested Citation

  • Isabelle Sin & Kabir Dasgupta & Gail Pacheco, 2018. "Parenthood and labour market outcomes," Working Papers 18_08, Motu Economic and Public Policy Research.
    • Handle: RePEc:mtu:wpaper:18_08
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    File URL: https://motu-www.motu.org.nz/wpapers/18_08.pdf
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    Citations

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    Cited by:

    1. Corey Allan & David C. Maré, 2022. "Who benefits from firm success? Heterogeneous rent-sharing in New Zealand," Working Papers 22_03, Motu Economic and Public Policy Research.
    2. Isabelle Sin & Shannon Minehan & Nicholas Watson, 2022. "Effective pathways through education to good labour market outcomes for M?ori: Literature summary," Working Papers 22_05, Motu Economic and Public Policy Research.
    3. Lisa Meehan & Gail Pacheco & Thomas Schober, 2023. "Basic Reading and Mathematics Skills and the Labour Market Outcomes of Young People: Evidence from PISA and Linked Administrative Data," The Economic Record, The Economic Society of Australia, vol. 99(327), pages 473-491, December.
    4. Isabelle Sin & Bronwyn Bruce-Brand, 2019. "Is the pay of medical specialists in New Zealand gender biased?," Working Papers 19_21, Motu Economic and Public Policy Research.
    5. Isabelle Sin & Isabelle Sin, 2024. "Building on strengths: Educational pathways that benefit Maori students," Working Papers 23_01, Motu Economic and Public Policy Research.
    6. Chris K Deak & Matthew D Hammond & Chris G Sibley & Joseph Bulbulia, 2021. "Individuals’ number of children is associated with benevolent sexism," PLOS ONE, Public Library of Science, vol. 16(5), pages 1-16, May.
    7. Shakked Noy & Isabelle Sin, 2021. "The Drivers of Mothers’ Parental Leave Decisions: Evidence from the Growing Up in New Zealand longitudinal survey," Working Papers 21_08, Motu Economic and Public Policy Research.

    More about this item

    Keywords

    gender wage gap; parenthood; labour market;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income

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