Article,
Children and Gender Inequality: Evidence from Denmark
Affiliations
- [1] NBER, Cambridge, MA 02138 USA [NORA names: United States; America, North; OECD];
- [2] Princeton Univ, Dept Econ, 238 Julis Romo Rabinowitz Bldg, Princeton, NJ 08544 USA [NORA names: United States; America, North; OECD];
- [3] London Sch Econ, Houghton St, London WC2A 2AE, England [NORA names: United Kingdom; Europe, Non-EU; OECD];
- [4] London Sch Econ, Houghton St, London WC2A 2AE, England [NORA names: United Kingdom; Europe, Non-EU; OECD];
- [5] Univ Copenhagen, Dept Econ, Oster Farigmagsgade 5,Bldg 26, DK-1353 Copenhagen K, Denmark [NORA names: KU University of Copenhagen; University; Denmark; Europe, EU; Nordic; OECD]
Abstract
Using Danish administrative data, we study the impacts of children on gender inequality in the labor market. The arrival of children creates a long-run gender gap in earnings of around 20 percent driven by hours worked, participation, and wage rates. We identify mechanisms driving these "child penalties" in terms of occupation, sector, and firm choices. We find that the fraction of gender inequality caused by child penalties has featured a dramatic increase over the last three to four decades. Finally, we show that child penalties are transmitted through generations, from parents to daughters, suggesting an influence of childhood environment on gender identity.