Motherhood Penalties and Fatherhood Premiums: Effects of Parenthood on Earnings Growth Within and Across Firms

Despite much interest in how parenthood contributes to the gender pay gap, prior research has rarely explored firms' roles in shaping the parenthood pay penalty or premium. The handful of studies that investigated parenthood's effects within and across firms generally compared parents and their childless peers at a given time and failed to account for unobserved heterogeneity between the two groups. Such comparisons also cannot inform how having children may alter individuals' earnings trajectories within and across firms. Using 26 rounds of the National Longitudinal Survey of Youth 1979 and fixed-effects models, we examine how being a mother or father is linked to earnings growth within and across firms. We find that women's pay decreases as they become mothers and that the across-employer motherhood penalty is larger than the within-employer penalty. By contrast, fatherhood is associated with a pay premium, and the within-employer fatherhood premium is considerably greater than the across-employer one. We argue that these results are consistent with the discrimination explanation of the motherhood penalty and fatherhood premium. Because employers are likely to trust women who become mothers while working for them more than new recruits who are mothers, their negative bias against mothers would be more salient when evaluating the latter, which could result in a larger between-organizational motherhood penalty. Conversely, employers' likely greater trust in existing workers who become fathers than fathers they hire from elsewhere may amplify their positive bias favoring fathers in assessing the former, which could explain the greater within-firm fatherhood premium.

The Constant Gap: Parenthood Premiums in Sweden 1968–2010

We know that parenthood has different consequences for men’s and women’s careers. Still, the research remains inconclusive on the question of whether this is mainly a consequence of a fatherhood premium, a motherhood penalty, or both. A common assumption is that women fall behind in terms of pay when they become mothers. Based on longitudinal data from the Swedish Level of Living Survey (LNU), and individual fixed-effects models, we examine the support for this assumption by mapping the size of parenthood effects on wages during the years 1968–2010. During this period, Swedish women’s labor supply increased dramatically, dual-earner family policies were institutionalized, and society’s norms on the gendered division of labor changed. We describe the development of parenthood effects on wages during this transformative period. Our results indicate that both genders benefit from a gross parenthood premium, both at the beginning of the period and in recent years, but the size of this premium is larger for men. Individual fixed-effects models indicate that the wage premium is mainly the result of parents’ increased labor market investments. Controlling for these, women suffer from a small motherhood penalty early in the period under study whereas parenthood is unrelated to women’s wages in later years and to men’s wages throughout the period. Neither for men nor for women do we find a statistically significant period change in the parenthood effects. Instead, patterns are remarkably stable over time given the radical changes in family policies and norms that took place during the period examined.

Signaling Parenthood: Managing the Motherhood Penalty and Fatherhood Premium in the U.S. Service Sector

An extensive body of research documents that women experience a motherhood penalty at work whereas men experience a fatherhood premium. Yet much of this work presupposes that employers are aware of a worker’s parental status. Given the different consequences that parenthood has on outcomes such as pay and promotions, it is conceivable that men and women may deploy their status as parents differently when interacting with employers. Drawing on in-depth interviews with a racially diverse sample, this article examines how mothers and fathers working in the service sector use their parental status when negotiating work and child care responsibilities. Mothers, particularly black mothers, were less likely to openly discuss their children at work. In some cases, women purposefully concealed from their employers the fact that they were mothers or found other ways of signaling their commitment to their jobs. Fathers, on the other hand, were more likely to discuss their children with their employers and overwhelmingly characterized their managers as understanding of their parenting obligations. Together, these findings help us understand how mothers and fathers navigate the consequences of parenthood in the workplace and add nuance to previous studies of motherhood penalties and fatherhood premiums.

Parenthood and Couples’ Relative Earnings in Norway

With the advance of the gender revolution, income dynamics in couples are changing. Nonetheless, in most Western societies, parenthood still promotes specialized gender roles. Utilizing Norwegian register data on all married and cohabiting couples born 1946–1989, we investigate possible changes in the associations between parenthood and within-couple inequality in earnings in the years 2005–2014. Precisely, using interactions and fixed effects models, we compare the development of within-couple gender gaps in earnings over time between childless couples and couples with children of different ages, and within couples before and after childbirth. Results showed that the gender gap in earnings in couples increased with the number of children and was most distinct among couples with children below 6 years. However, the association between parenthood and within-couple inequality in earnings was reduced across the study period, a development partly driven by a decreasing fatherhood premium evident from 2009 onwards. Not only women’s but also men’s income development is now negatively affected by having young children in the household. Our findings, thus, indicate important changes in how men and women prioritize paid labour after a childbirth.

Providing for a Family in the Working Class: Gender and Employment After the Birth of a Child

Navigating the labor market in today’s economy has become increasingly difficult for those without a college degree. In this study, we ask whether and how working-class men and women in the United States are able to secure gains in wages and/or earnings as they transition to parenthood or increase family size. We look closely at child parity, employment behavior (e.g., switching employers, taking on multiple jobs, increasing hours), and occupation in the year after the birth of a child. Using the 2004 and 2008 panels of the Survey for Income and Program Participation (SIPP), we employ fixed-effects models to examine the impact of changing labor market behavior or occupation on wages and earnings after the birth of a child. We find limited evidence that low- and middle-skill men experience a “fatherhood premium” after the birth of a child, conditional on child parity and occupation. For men, nearly all occupations were associated with a “wage penalty” after the birth of a child (parity varies) compared to the service sector. However, overall higher wages in many male-dominated and white-collar occupations make these better options for fathers. For women, we see clear evidence of a “motherhood penalty,” which is partly accounted for by employment behaviors, such as switching to a salaried job or making an occupational change.