Female Executives and the Motherhood Penalty

Abstract

We use U.S. linked survey and administrative data to investigate whether the sex composition of a firm’s executives affect the earnings of new mothers. Our empirical strategy compares the earnings trajectories of new mothers to observably similar coworkers who did not give birth around that time. On average, mothers earn almost $2,000 less per quarter two years after birth but the magnitude of these losses is unrelated to the female share of executives at the mothers’ employer. Our results suggest that increasing the representation of women in firms’ leadership positions will not reduce the motherhood penalty.