Motherhood Wage Penalties in Latin America: The Significance of Labor Informality

Abstract revious research has established the presence of a motherhood wage penalty in many developed societies; however, whether mothers face similar disadvantages in developing countries remains underexplored. This article argues that different intervening factors emerge when considering mothers’...

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Bibliographic Details
Published in:Social forces 2020-09, Vol.99 (1), p.59-85
Main Authors: Villanueva, Aida, Lin, Ken-Hou
Format: Article
Language:English
Subjects:
Childlessness
Compensation
Compensation and benefits
Demographic aspects
Developed countries
Developing countries
Employment
Fines (Penalties)
Human capital
Income inequality
Informal economy
Labor
Labor market
LDCs
Mothers
Original
Penalties
Salary
Social science research
Wage differential
Wages
Wages & salaries
Wages and salaries
Women
Working mothers
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Summary:Abstract revious research has established the presence of a motherhood wage penalty in many developed societies; however, whether mothers face similar disadvantages in developing countries remains underexplored. This article argues that different intervening factors emerge when considering mothers’ labor compensation in developing contexts. Labor informality, a key characteristic of labor markets in developing countries, could play a significant role in shaping the wage consequence of motherhood. Using microdata from 43 national household surveys conducted between 2000 and 2017, we analyze five Latin American countries: Argentina, Brazil, Chile, Mexico, and Peru. After accounting for selection into employment and human capital, we find that mothers receive lower wages than childless women in all five countries. The penalties are similar to those found in some developed countries, ranging from 12 percent in Brazil to 21 percent in Chile. Mothers’ higher likelihood to work in the informal sector accounts for part of the wage gap.
ISSN:0037-7732
1534-7605
DOI:10.1093/sf/soz142