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The Motherhood Earnings Dip: Evidence from Administrative Records

Fernández-Kranz Daniel, Aitor Lacuesta and Núria Rodríguez-Planas
Journal of Human Resources, January 2013, 48 (1) 169-197; DOI: https://doi.org/10.3368/jhr.48.1.169
Fernández-Kranz Daniel
Daniel Fernández-Kranz is an associate professor of economics at the IE-Business School, Madrid. Aitor Lacuesta is a senior economist at the Banco de España, Madrid. Núria Rodríguez-Planas is a visiting research fellow at IZA, affiliated researcher at the Institut d'Anàlisi Econòmica (CSIC), and visiting professor at the Universitat Pompeu Fabra
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Aitor Lacuesta
Daniel Fernández-Kranz is an associate professor of economics at the IE-Business School, Madrid. Aitor Lacuesta is a senior economist at the Banco de España, Madrid. Núria Rodríguez-Planas is a visiting research fellow at IZA, affiliated researcher at the Institut d'Anàlisi Econòmica (CSIC), and visiting professor at the Universitat Pompeu Fabra
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Núria Rodríguez-Planas
Daniel Fernández-Kranz is an associate professor of economics at the IE-Business School, Madrid. Aitor Lacuesta is a senior economist at the Banco de España, Madrid. Núria Rodríguez-Planas is a visiting research fellow at IZA, affiliated researcher at the Institut d'Anàlisi Econòmica (CSIC), and visiting professor at the Universitat Pompeu Fabra
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Abstract

Using Spanish Social Security records, we document the channels through which mothers fall onto a lower earnings track, such as shifting into part-time work, accumulating lower experience, or transitioning to lower-paying jobs, and are able to explain 71 percent of the unconditional individual fixed-effects motherhood wage gap. The earnings trajectories' analysis reveals that “mothers to be” experience important relative earnings increases several years before giving birth but this earnings' advantage falls right after birth, taking in average nine years to recover. Heterogeneity matters as most of the motherhood dip is driven by workers with permanent contracts.

  • Accepted April 2012.

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Journal of Human Resources: 48 (1)
Journal of Human Resources
Vol. 48, Issue 1
1 Jan 2013
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The Motherhood Earnings Dip: Evidence from Administrative Records
Fernández-Kranz Daniel, Aitor Lacuesta, Núria Rodríguez-Planas
Journal of Human Resources Jan 2013, 48 (1) 169-197; DOI: 10.3368/jhr.48.1.169

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The Motherhood Earnings Dip: Evidence from Administrative Records
Fernández-Kranz Daniel, Aitor Lacuesta, Núria Rodríguez-Planas
Journal of Human Resources Jan 2013, 48 (1) 169-197; DOI: 10.3368/jhr.48.1.169
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