The motherhood earnings penalty : The case of Sweden

• Main Authors: Nordquist, Johanna, Saranpää, Ida
• Format: Others
• Language: English
• Published: Linnéuniversitetet, Institutionen för nationalekonomi och statistik (NS) 2020
• Subjects: Economics; Nationalekonomi
• Online Access: http://urn.kb.se/resolve?urn=urn:nbn:se:lnu:diva-96366

This paper investigates the motherhood earnings penalty of women in Sweden. To answer this question, we conducted an empirical analysis by using the ordinary least square on a data sample regarding women and the total number of children. To identify the source of the earnings gap, we stratified the sample of women by educational attainment to test for the work-effort hypothesis, unmarried and married women for the specialization hypothesis. Finally, testing for the compensating earnings differential theory by comparing women within the public sector to the private sector. The results showed that women with children experience an earnings penalty compared to women without children. The raw earnings penalty for one child was 34 percent, two children at 32 percent, and three or more children at 40 percent.