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Are children driving the gender wage gap?
Authors:Ewa Cukrowska‐Torzewska  Anna Lovasz
Institution:1. Faculty of Economic SciencesUniversity of Warsaw;2. Institute of EconomicsCentre for Economic and Regional Studies of the Hungarian Academy of Sciences;3. Department of EconomicsEotvos Lorand University
Abstract:We examine how much children and the responsibilities related to them contribute to the divergence of men's and women's wages, and consequently, to the formation of the gender wage gap. To derive the relative contribution of gender‐specific parent gaps to the overall gender wage gap, we provide a modification of the Oaxaca–Blinder decomposition and include simultaneous corrections for selection into employment and parenthood. The results show that the fatherhood wage premium contributes most significantly to the gender wage gap, especially in Poland. The motherhood penalty is also significant, while the role of the gender gap among childless individuals is small.
Keywords:Gender wage gap decomposition  family gap  motherhood penalty  fatherhood premium
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