Large motherhood penalties in US administrative microdata

Area of Science:

• Economics
• Sociology
• Labor Market Studies

Background:

• Previous research indicates a motherhood penalty in US survey data.
• The extent of this penalty in specific contexts remains under-explored.

Purpose of the Study:

• To investigate the motherhood penalty in unique contexts where it might be reduced.
• To analyze the impact of childbearing on women's earnings relative to men in diverse family and firm structures.

Main Methods:

• Utilized administrative data from the US Unemployment Insurance program, encompassing 811,000 quarterly earnings histories.
• Compared earnings trajectories of women and men in couples where women initially earned more, at female-led firms, and at female-dominated firms.

Main Results:

• The motherhood penalty was not diminished in any of the tested contexts; it often increased over time post-childbearing.
• In female-breadwinner families, higher-earning women experienced a 60% earnings drop relative to male partners.
• Women were less likely to move to higher-paying firms and more likely to leave the labor force after childbirth compared to men.

Conclusions:

• The findings present a discouraging outlook on the motherhood penalty, exceeding previous research.
• Specific contexts assumed to mitigate the penalty did not show this effect.
• Proximate mechanisms include reduced firm mobility and increased labor force exit for women post-childbearing.