Abstract

Using Spanish Social Security records, we document the channels through which mothers fall onto a lower earnings track, such as shifting into part-time work, accumulating lower experience, or transitioning to lower-paying jobs, and are able to explain 71 percent of the unconditional individual fixed-effects motherhood wage gap. The earnings trajectories’ analysis reveals that “mothers to be” experience important relative earnings increases several years before giving birth but this earnings’ advantage falls right after birth, taking in average nine years to recover. Heterogeneity matters as most of the motherhood dip is driven by workers with permanent contracts.

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Additional Information

ISSN
1548-8004
Print ISSN
0022-166X
Pages
pp. 169-197
Launched on MUSE
2013-01-31
Open Access
No
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