The effect of maternity on employment and wages in Mexico

We estimate child penalties in the Mexican formal labour market at the aggregate level and for specific population subgroups. We use longitudinal administrative data for formal workers. The child penalty begins immediately with pregnancy. Six years after childbirth, the average penalty is 24% on wag...

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Bibliographic Details
Published in:Applied economics letters 2022-12, Vol.29 (21), p.1975-1979
Main Authors: Campos-Vazquez, Raymundo M., Rivas-Herrera, Carolina, Alcaraz, Eduardo, Martinez, Luis A.
Format: Article
Language:English
Subjects:
Child penalty
Economic analysis
Economic theory
Economics
Employment
event study
gender gap
Labor market
Mexico/Latin America
motherhood
Mothers
Penalties
Women
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Summary:We estimate child penalties in the Mexican formal labour market at the aggregate level and for specific population subgroups. We use longitudinal administrative data for formal workers. The child penalty begins immediately with pregnancy. Six years after childbirth, the average penalty is 24% on wages and 16% on the rate of formal employment for women who are mothers. The penalties are greater for mothers who are married, poor, or young. The wage penalty increases over time.
ISSN:1350-4851
1466-4291
DOI:10.1080/13504851.2021.1967272