Arbeitspapier

Can the child penalty be reduced? Evaluating multiple policy interventions

Children cause large earnings drops for mothers but not fathers, a stylized fact known as the "child penalty" that explains a substantial portion of remaining gender income gaps. Can policy reduce the child penalty? We first document how changes in the child penalty over a long time horizon in Norway correlate with major family policy reforms. Next, we evaluate two possible interventions: paternity leave and high-quality childcare. We find no impact of paternity leave on child penalties or a measure of father's preferences for childcare. In contrast, a year of publicly provided childcare reduces child penalties by 23% during the years of use. These results suggest governments can act to reduce child penalties, but providing alternatives to the mother's time, such as quality childcare, is more effective than paternity leave.

Language
Englisch

Bibliographic citation
Series: Discussion Papers ; No. 983

Classification
Wirtschaft
Labor Force and Employment, Size, and Structure
Labor Demand
Time Allocation and Labor Supply
Labor Discrimination
Subject
Gender wage gap
child penalty
paternity leave
childcare

Event
Geistige Schöpfung
(who)
Andresen, Martin Eckhoff
Nix, Emily
Event
Veröffentlichung
(who)
Statistics Norway, Research Department
(where)
Oslo
(when)
2022

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Andresen, Martin Eckhoff
  • Nix, Emily
  • Statistics Norway, Research Department

Time of origin

  • 2022

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