Marriage and the Motherhood Wage Penalty Among African Americans,Hispanics, and Whites

This study draws on data from the National Longitudinal Survey of Youth (N = 5,929) to analyze the moderating effects of race and marriage on the motherhood wage penalty. Fixed‐effects models reveal that for Hispanic women, motherhood is not associated with a wage penalty. For African Americans, only married mothers with more than 2 children pay a wage penalty. For Whites, all married mothers pay a wage penalty, as do all never‐married mothers and divorced mothers with 1 or 2 children. These findings imply that racial differences in the motherhood wage penalty persist even for women with similar marital statuses, and they suggest that patterns of racial stratification shape women’s family experiences and labor market outcomes.     

Domestic Work and the Wage Penalty for Motherhood in West Germany

Previous research suggests that household tasks prohibit women from unfolding their full earning potential by depleting their work effort and limiting their time flexibility. The present study investigated whether this relationship can explain the wage gap between mothers and nonmothers in West Germany. The empirical analysis applied fixed‐effects models and used self‐reported information on time use and earnings as well as monthly family and work histories from the German Socio‐Economic Panel (1985–2007, N = 1,810; Wagner, Frick, & Schupp, 2007 ). The findings revealed that variation in reported time spent on child care and housework on a typical weekday explains part of the motherhood wage penalty, in particular for mothers of very young children. Furthermore, housework time incurred a significant wage penalty, but only for mothers. The authors concluded that policies designed to lighten women's domestic workload may aid mothers in following rewarding careers.     

The Motherhood Penalty at Midlife: Long‐Term Effects of Children on Women's Careers

The authors build on prior research on the motherhood wage penalty to examine whether the career penalties faced by mothers change over the life course. They broaden the focus beyond wages to also consider labor force participation and occupational status and use data from the National Longitudinal Survey of Young Women to model the changing impact of motherhood as women age from their 20s to their 50s (n = 4,730). They found that motherhood is “costly” to women's careers, but the effects on all 3 labor force outcomes attenuate at older ages. Children reduce women's labor force participation, but this effect is strongest when women are younger and is eliminated by the 40s and 50s. Mothers also seem able to regain ground in terms of occupational status. The wage penalty for having children varies by parity, persisting across the life course only for women who have 3 or more children.     

Motherhood and Earnings: Wage Variability by Major Occupational Category and Earnings Level

Prior research has indicated that women with children earn less than their childless counterparts. In addition, recent research has found that the motherhood wage penalty may be most severe for low-income earners. Using panel data from the National Longitudinal Survey of Youth (1979), we test two hypotheses. First, are there occupational differences in the motherhood wage penalty? Second, are there occupational differences in the relative wage penalty experienced by low and high wage mothers? Our results indicated that mothers in sales occupations are penalized at a significantly higher rate than mothers in non-sales occupations, while mothers in blue-collar occupations were penalized the least. Furthermore, the wage cost of motherhood was greatest amongst the highest earners in sales occupations.     

Parenthood wage penalties in a double income society

We estimate how parenthood affects hourly wages using panel data for Norwegian employees in the years 1997–2007. Though smaller than for most other OECD countries, we find substantial wage penalties to motherhood, ranging from a 1.2 % wage reduction for women with lower secondary education to 4.9 % for women with more than four years of higher education. Human capital measures such as work experience and paid parental leave do not explain the wage penalties, indicating that in the Norwegian institutional context, mothers are protected from adverse wage effects due to career breaks. We do however find large heterogeneity in the effects, with the largest penalties for mothers working full time and in the private sector. Contrary to most studies using US data and to previous research from Norway, we find a small wage penalty also to fatherhood. Also for men, the penalty is greater for those who work full time and in the private sector. A substantial share of the fatherhood wage penalty is explained by paternity leave.     

Der Einfluss der beruflichen Geschlechtersegregation auf den „Gender Pay Gap“

Occupational sex segregation is generally seen as an important determinant for the gender specific wage differential (“gender pay gap”). Therefore, the present study examines factors explaining wage penalties in typical women’s occupations in Germany. Dealing with sociological and social psychological status theories it is assumed that women’s occupations are paid less because of typical feminine work content that is devalued on the labor market—whereas typical masculine work content dominating in men’s occupations is monetary highly valued. Hypotheses are tested with data from the German Socio-Economic Panel Study (SOEP) 2000–2010 applying linear fixed effects models. Occupational characteristics, like gendered work content, are merged from the BIBB/BAuA-Erwerbstätigenbefragung (Employment Survey) 2005/2006 and the Microcensus to the SOEP. The analysis reveals the mediating effect of gendered work content on wage penalties in gross hourly wages for employees in women’s occupations—but only for men. This gender specific effect is explained with different expectations for competence and effort concerning gendered work content with which women and men are confronted. Lower norms for overwork in women’s occupations partly explain wage penalties in those occupations especially for women. Finally, an Oaxaca/Blinder decomposition shows that gendered work content explains the “gender pay gap” significantly.     

Stagnation only on the surface? The implications of skill and family responsibilities for the gender wage gap in Sweden, 1974–2010

The wage differential between women and men persists in advanced economies despite the inflow of women into qualified occupations in recent years. Using five waves of the Swedish Level‐of‐Living Survey (LNU), this paper explores the gender wage gap in Sweden during the 1974–2010 period overall and by skill level. The empirical analyses showed that the general gender wage gap has been nearly unchanged for the past 30 years. However, the gender difference in wage in less qualified occupations fell considerably, whereas the gender pay gap remained stable for men and women in qualified occupations. The larger significance of family responsibilities for wages in qualified occupations is one likely explanation for this result.     

SOFT SKILLS,HARD SKILLS,AND THE BLACK/WHITE WAGE GAP

This study examines the relative importance of soft skills versus hard skills across occupations and its impact on the observed wage gap between Blacks and Whites in the United States. It posits that the Black/White pay gap may vary across occupations that require the use of different types of skills. We classify occupations into hard‐skill intensive versus soft‐skill intensive jobs using the skill content measures of different occupations from the Occupational Information Network (O*Net). We then use data from the National Longitudinal Survey of Youth (NLSY) and Current Population Survey (CPS) to investigate the impact of job skill type on the wage gap. Consistent with our theoretical predictions, we show that this wage gap in white‐collar jobs is smaller for hard‐skills jobs than it is for soft‐skills jobs. Moreover, we demonstrate that, in response to variations in the wage gap across different occupations, Blacks are more likely to self‐select themselves into hard‐skills jobs, ceteris paribus. This shows not only that discrimination against Blacks varies across occupations, but also that such discrimination induces the self‐selection of Blacks into certain occupations. Moreover, this finding highlights the role played by co‐worker/customer discrimination in explaining the racial wage gap in the U.S. labor market. (JEL J15, J31)     

Daily Spillover of Low‐Income Mothers' Perceived Workload to Mood and Mother–Child Interactions

This study investigated associations of low‐income working mothers' daily perceived workload and their reports of their own mood and their interactions with their young children. Sixty‐one mothers were asked to report on their workload, mood, and interactions with their preschool‐age children every day for 2 weeks (N = 520 work days). Low‐income mothers reported significant day‐to‐day variability in workload. The results revealed a curvilinear pattern of negative work‐to‐family spillover: Both lower‐than‐average and higher‐than‐average workload days were associated with increased negative and tired mood, decreased positive mood, and increased harsh mother–child interactions. Although both younger and older mothers experienced a curvilinear pattern of spillover to daily mood, younger mothers in the period of emerging adulthood also experienced spillover to mother–child interactions, perhaps because they are still learning how to balance work and family demands. Both high and low workload are salient stressors in the daily lives of low‐wage working mothers.     

Motherhood Penalties and Living Arrangements in China

Past research on the “motherhood wage penalty” has been based on data from nuclear families, leaving open the possibility that the motherhood wage penalty may be lower or even absent in multigenerational families. In this article, the wage gap between mothers and nonmothers is examined in nuclear and multigenerational families in the context of contemporary China, which has a long tradition of patriarchal families. Using 1993 to 2006 China Health and Nutrition Survey data, the magnitude and variation of motherhood penalty is explored with fixed effects models among 1,058 women. The results show that each additional child lowers hourly wages by about 12%. In addition, the motherhood penalty is largest for women living with their husbands' parents, smaller for women not living with parents, and nil for women living with their own parents.     

Occupational downgrading and wages of New Member States immigrants to Ireland

This paper explores the importance of occupational downgrading in explaining the pay gap of New Member States (NMS) immigrants to Ireland by taking advantage of two data sources, the Census and the Survey on Income and Living Conditions (SILC). The study identifies biases in the coverage of NMS immigrants in SILC that dampen their estimated earnings disadvantage. Corrections to population weights are suggested. These adjustments have a significant impact on results, increasing both the size of the wage penalty of NMS immigrants and the extent to which the pay gap can be explained by occupational downgrading. A replication of published results for the UK reveals similar patterns of penalties for NMS workers in both countries. Factors that may explain the concentration of NMS workers in low‐skill/low‐wage occupations are discussed.     

IDENTIFYING CHANGES IN THE SPATIAL DISTRIBUTION OF CRIME: EVIDENCE FROM A REFEREE EXPERIMENT IN THE NATIONAL FOOTBALL LEAGUE

Between the 2009–2010 and 2010–2011 seasons, the National Football League (NFL) repositioned one of its officials in order to prevent injuries among officials. This creates a quasi‐experiment for studying how a change in the extent of policing affects detection of offenses. Using play‐by‐play data from the 2009–2010 and 2010–2011 NFL season, I estimate how the detection of offensive holding changes when the positioning of an official changes. I find that there is approximately a 20 increase in the number of offensive holding penalties called after the NFL repositioned the official. Penalties called on defensive linemen fell as a result of the repositioning. Overall, there was no change in the total number of penalties called. Using the estimated change in the probability of a penalty, I estimate the probability of an official calling a penalty. I infer that NFL officials detect approximately 60% of crimes committed on the field. (JEL K4, Z0, D0)     

Occupations,Human Capital and Skills

Economists have long recognized that occupations can be used as proxies for skills in wage regressions. Yet the potential existence of non-market factors such as discrimination and occupational choice (sorting) on the basis of job attributes that are separate from, but potentially correlated with, wages makes occupations an imperfect control for skills. In this paper, we consider whether inter-occupational wage differentials that are unexplained by measured human capital are indeed due to differences in unmeasured skill. Using the National Compensation Survey, a large, nationally-representative dataset on jobs and ten different components of job requirements, we compare the effects on residual wage variation of including occupation indicators and these skill requirements measures. We find that although these skill requirements vary across 3-digit occupations, occupation indicators decrease wage residuals by far more than can be explained by skill alone. This indicates that “controlling for occupation” does not equate to controlling for only these skill measures, but also for other factors. Additionally, we find that there is considerable within-occupation variation in skill requirements, and that the amount of variation is not constant across skill levels. As a result, including occupation indicators in a wage model introduces heteroskedasticity that must be accounted for. We suggest that caution be applied when using and interpreting occupation indicators as controls in wage regressions.     

Native‐Migrant Wage Differential Across Occupations: Evidence from Australia

We investigate wage differential by migrant status across white‐collar and blue‐collar occupations in Australia. Migrants are observed to have a higher wage; this difference, however, does not exist once we control for covariates. The unconditional wage differential varies over wage distribution as well as by occupation. Significant wage differentials are found above the median: positive for white‐collar workers and negative for blue‐collar workers. Using recently developed decomposition methods based on Firpo, Fortin, and Lemieux (2009) we decompose wage differentials across their distribution. Overall, the wage advantage of migrants reflects their superior labour market characteristics, and in particular, their levels of education. We find that English language proficiency plays an important role in wage differences among immigrants from non‐English speaking countries.     

Die Vereinbarkeitsfrage für Männer: Welche Auswirkungen haben Elternzeiten und Teilzeitarbeit auf die Stundenlöhne von Vätern?Work-family reconciliation for men: Do parental leave and part-time work affect fathers’ hourly wages?

As previous research shows, many German fathers would like to spend more time with their children, but long working hours often restrict their opportunities to do so. Parental leave and part-time work could help fathers to reconcile work and family. Yet, labor market theories predict that using such family-friendly policies may lead to wage penalties. Hence, many fathers decide against using such policies because they fear that parental leave or part-time work will lead to financial penalties and career disadvantages. This article evaluates this concern by empirically examining the effect of parental leave and part-time work on fathers’ hourly wages. Using data from the German Socio-Economic Panel (SOEP) 1991–2013 and Families in Germany (FiD) 2010–2013, results from fixed-effects regression analyses show that part-time work is associated with wage penalties, but parental leave is not – irrespective of whether fathers only took the two months fathers’ quota or longer parental leaves. The results hence indicate that the German parental leave legislation enables fathers to spend more time with their children while protecting them from wage penalties at work.     

INTERMARRIAGE AND THE LABOR MARKET OUTCOMES OF ASIAN WOMEN

The impact of intermarriage with natives, on labor market outcomes of immigrants, is not homogeneous across ethnic groups. Wages of Asian women are compared with non‐Asians. Both ordinary least squares and instrumental variables estimates of the effects of intermarriage on the wages of Asian women are negative and significant. Non‐Asian women earn a wage premium that becomes insignificant when controls for selection into marriage are introduced. One possible explanation for the intermarriage penalty for Asians is an income effect of having a high‐earning native husband. Intermarriage penalties rise with husband's education. Assimilation patterns of intermarried Asians indicate that they have lower initial wages, market hours, and employment, but exhibit faster rates of growth over their years of stay. The results are robust across Asian subgroups and husband's ethnicity. (JEL J16, J12, J31, J61)     

LABOR SUPPLY ESTIMATION BIASES FROM DISREGARDING NONWAGE BENEFITS

Labor supply models and research underpinned by labor supply decisions often assume that workers' choices are functions of wage and wage offers. However, the literature shows evidence that such decisions at least partly depend on nonwage benefits encompassed in jobs and occupations. In this paper, I develop and estimate a stochastic dynamic model of occupation and job choice, where nonwage benefits are directly incorporated into the decision alongside wages (a full model). Nested within the full model is a wage model, which represents the common practice in the literature of basing selection solely on wages and disregarding nonwage benefits. I separately estimate the full model and the nested wage model to compare the implications (biases) of omitting nonwage benefits. I compare the two models' estimates of elasticities and an inequality reduction intervention policy. I find that disregarding nonwage benefits generally causes biases. There are cases when the two models predict very similar outcomes and have close estimates, such as in occupation‐specific elasticities and job transition elasticities. But these special cases are products of canceling biases. In most cases, ignoring nonwage benefits will bias estimates by overestimating the importance of wage in the selection process and by disregarding changes in relative prices between wage and nonwage benefits. (JEL J20, J32, D91)     

Intertwining Gender Inequalities and Gender‐neutral Legitimacy in Job Evaluation and Performance‐related Pay

This article analyses the intertwining inequalities in wage determination and the gender‐neutral legitimacy that pay systems provide by masking these inequalities. Job evaluation and performance‐related pay were originally designed for purposes other than promoting equal pay, namely as managerial tools for determining wage levels. Typically, the main objective of a pay system is not to promote equal pay. Still, as a tool for assessing the value of work, job evaluation is regarded as a central method in promoting equal pay. The use of job evaluation is recommended by the European Commission and the International Labour Organization, and often features in gender‐equality policy and legislation. In contrast with the status of job evaluation, little research exists on performance‐related pay and gender pay equity. The findings show that the wages determined by pay systems reflect gendered cultural valuations of jobs and occupations. Pay systems provide gender‐neutral legitimacy for gender‐based wage disparities.     

Estimating sex discrimination in professional occupations with the dictionary of occupational titles

Although women have gained entrance into some of the top professional occupations, they appear to have achieved few economic gains from this progress. The extensive occupational segregation existing between men and women in all occupations handicaps investigations of the sources of this persistent inequality. This article proposes an exploratory method for identifying occupations containing comparable work and presents an analysis of male‐female wage differences within a subset of the highly skilled professional occupations. Using a cluster analysis of the characteristics of jobs available in the 1977 Dictionary of Occupational Titles, three clusters of high‐skill occupations are identified. Next, a sample of labor‐force participants, aged 25 to 35 years and employed in these occupations, is used in an ordinary least squares (OLS) regression of hourly wages on a standard set of labor market traits. These results are used to decompose the male‐female wage gap. A liberal interpretation of the decomposition estimates is that between 39.9% and 58.8% of the gap is attributed to comparable‐worth discrimination.     

The class‐origin wage gap: heterogeneity in education and variations across market segments

This paper uses unique population‐level matched employer–employee data on monthly wages to analyse class‐origin wage gaps in the Swedish labour market. Education is the primary mediator of class origin advantages in the labour market, but mobility research often only considers the vertical dimension of education. When one uses an unusually detailed measure of education in a horizontal dimension, the wage gap between individuals of advantaged and disadvantaged class origin is found to be substantial (4–5 per cent), yet considerably smaller than when measures are used which only control for level of education and field of study. This is also the case for models with class or occupation as outcome. The class‐origin wage gap varies considerably across labour market segments, such as those defined by educational levels, fields of education, industries and occupations in both seemingly unsystematic and conspicuous ways. The gap is small in the public sector, suggesting that bureaucracy may act as a leveller.