Children and Gender Inequality: Evidence from Denmark

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 penal...

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Bibliographic Details
Published in:American economic journal. Applied economics 2019-10, Vol.11 (4), p.181-209
Main Authors: Kleven, Henrik, Landais, Camille, Søgaard, Jakob Egholt
Format: Article
Language:English
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Summary: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.
ISSN:1945-7782
1945-7790
DOI:10.1257/app.20180010