State-level Gender Inequality and Couples' Relative Earnings Following Parenthood over Four Decades

We draw from gender perspectives on the division of labor and emerging research on structural sexism to empirically evaluate how systemic gender inequality shapes within-couple earnings inequality at the turning point of parenthood. Our data on pre- and post-birth earnings come from successive couple-level panels of the Current Population Survey over four decades (1982-2020, N = 87,694 couples and 175,388 couple-observations), merged to state-level indicators of gender inequality spanning the same time period that tap the devaluation of work done by women across multiple domains. Results from fixed effect models suggest that state-level gender inequality shapes couples' responses to parenthood in meaningful ways, with steeper declines in wives' relative earnings among new parents living in states that place lower value on women's work. The estimated effect of sexism is gendered, operating through wives' earnings. It persists through the early childbearing years and across decades, and it varies little by measures of couples' social advantage. Evidence that structural sexism exacerbates earnings inequality among parents is robust, with implications for mothers' economic vulnerability and well-being.