Abstract
Using German administrative data from the 1960s onward, this paper (i) examines the long-term evolution of child-related gender inequality in earnings and (ii) assesses the impact of family policies on this inequality. Our first (methodological) contribution is a decomposition approach that separates changes in child-related inequality into three components: the share of mothers, child penalties, and potential earnings of mothers (absent children). Our second contribution is a comprehensive analysis of child-related gender inequality in Germany. We derive three sets of findings. First, child penalties (i.e., the share of potential earnings mothers lose due to children) have increased strongly over the last decades. Mothers who had their first child in the 1960s faced much smaller penalties than those who gave birth in the 2000s. Second, the fraction of overall gender inequality in earnings attributed to children rose from 14% to 64% over our sample period. We show that this trend resulted not only from growing child penalties but also from rising potential earnings of mothers. Intuitively, in later decades, mothers had more income to lose from child-related career breaks. Third, we show that parental leave expansions between 1979 and 1992 amplified child penalties and explain nearly a third of the increase in child-related gender inequality. By contrast, a parental benefit reform in 2007 mitigated further increases.
| Original language | English |
|---|---|
| Article number | 105018 |
| Number of pages | 21 |
| Journal | European Economic Review |
| Volume | 175 |
| DOIs | |
| Publication status | Published - 01 Jun 2025 |
Fields of science
- 101018 Statistics
- 502051 Economic statistics
- 502021 Microeconomics
- 105108 Geostatistics
- 502020 Market research
- 507016 Regional economy
- 502018 Macroeconomics
- 101029 Mathematical statistics
- 502047 Economic theory
- 502046 Economic policy
- 504014 Gender studies
- 102009 Computer simulation
- 303010 Health economics
- 101026 Time series analysis
- 502003 Foreign trade
- 101024 Probability theory
- 502 Economics
- 502002 Labour economics
- 502027 Political economy
- 502001 Labour market policy
- 502025 Econometrics
- 504006 Demography
- 502039 Structural policy
- 305907 Medical statistics
- 504004 Population statistics
- 405002 Agricultural economics
- 509 Other Social Sciences
- 509013 Social statistics
- 506004 European integration
- 106007 Biostatistics
- 502013 Industrial economics
- 502012 Industrial management
- 502042 Environmental economics
- 504007 Empirical social research
- 502010 Public finance
- 101007 Financial mathematics
- 502009 Corporate finance
JKU Focus areas
- Sustainable Development: Responsible Technologies and Management
- Digital Transformation