Working Paper Series,
IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: This paper examines the impact of parenthood on labor market outcomes for both men and women using population-wide annual income data from 1960 to 2021 in Sweden. First, I document the contemporary child penalties across several labor market outcomes. Second, I show that while the motherhood penalty in earnings declined significantly during the 1960s, 1970s, and early 1980s, the rate of decline slowed from the late 1980s onwards. Third, I identify a fatherhood penalty emerging since the 1980s, particularly pronounced among men in more gender-egalitarian households (proxied by the father’s share of parental leave) and among fathers who have sons relative to daughters.

Keywords: Parenthood; child penalties; gender earnings gap

JEL-codes: J13; J16; J22; J31

Language: English

41 pages, July 9, 2024

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