Inside the Black Box of Child Penalties
44 Pages Posted: 19 Dec 2019
Date Written: December 2, 2019
As developed countries have been unable to completely close the gender wage and participation gap, recent literature has revisited the old findings regarding the existence of child penalties in the labor market. Developing countries, however, present different challenges to the ability of women to work for pay. In this paper, we produce the first formal estimation of the child penalties in the Mexican labor market, and the second in a Latin American context. Using an event study approach and an instrumental variable strategy as a robustness check, we estimate the short run impact of children on labor force participation and wages, as well as their effect on transitions between the informal and formal sector. We find significant gaps between men and women in the short run impacts of children on both paid and unpaid work.
Keywords: Child penalty, Event study, Gender norms, Family structure, Labor outcomes, Mexico
JEL Classification: J12, J13, J16, J22, J31
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