Gendered Divergence in the Impact of Parenthood on Wages: The Role of Family Size, Human Capital and Working Time

Abstract

While gender pay disparity is a frequently researched area, few have focused on how parenthood and family size impact the wages of mothers and fathers together. The purpose of this study is therefore to take a broader view of this pivotal topic, one which has continued relevance as governments and organisations seek to advance gender equality. The findings show clear gendered divergence in the impact of parenthood on wages, with 'motherhood wage penalties' and 'fatherhood wage premiums' in both annual and hourly wage. The widest gap in earnings between women and men occurs at three or more children even when human capital and labour market selectivity factors are controlled for. For women, the largest penalty occurs at one and three or more children while for men, having two children represents the peak point in terms of wage gains to parenthood. Accounting for working time through hourly wage estimations narrows but does not eliminate parental wage gaps, pointing to other factors such as occupational segregation.