Scandinavian Working Papers in Economics

Discussion Paper Series in Economics,
Norwegian School of Economics, Department of Economics

No 9/2018: The Role of Parenthood on the Gender Gap among Top Earners.

Aline Bütikofer (), Sissel Jensen () and Kjell G. Salvanes ()
Additional contact information
Aline Bütikofer: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH , Department of Economics, Helleveien 30, N-5045 Bergen, Norway
Sissel Jensen: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH , Department of Economics, Helleveien 30, N-5045 Bergen, Norway
Kjell G. Salvanes: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH , Department of Economics, Helleveien 30, N-5045 Bergen, Norway

Abstract: Is the wage penalty due to motherhood larger among highly qualified women? In this paper, we study the effect of parenthood on the careers of high-achieving women relative to high-achieving men in a set of high-earning professions with either nonlinear or linear wage structures. Using Norwegian registry data, we find that the child earnings penalty for mothers in professions with a nonlinear wage structure, MBAs and lawyers, is substantially larger than for mothers in professions with a linear wage structure. The gender earnings gap for MBA and law graduates is around 30%, but substantially less for STEM and medicine graduates, 10 years after childbirth. In addition, we provide some descriptive statistics on the role of fertility timing on the child earnings penalty.

Keywords: Parenthood on the careers; wage structure

JEL-codes: E24; J16

39 pages, April 26, 2018

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