Gender Norms and the Child Penalty in China

Abstract

Using a comprehensive individual panel dataset in China and an event study approach, we examine the effects of having a child on gender inequality on various labor market outcomes and its mechanisms. Results show that becoming a mother implies a sharp decline in individual earnings, working hours and wage rate, while fathers’ outcomes remain unaffected. These outcomes are driven by a potential channel: gender norms. Women, their husbands, their parents, and the local society holding traditional views towards gender roles lead to larger child penalty in individual earnings than those with egalitarian views. Heterogeneity analysis shows that couple’s gender norms can explain gender differences in urban areas, and grandparents’ gender norms can explain the long-term gender differences in rural areas. Potential channels are that traditional views may make mothers more inclined to leave labor market or engage in informal jobs that are more flexible and pro-family.

Keywords: child penalty, gender gap, gender norms, individual earnings, labor market equality, earnings differentials