The impact of maternity on wage inequality in the formal labor market: an analysis for Brazil between 2008 and 2018
DOI:
https://doi.org/10.5007/2175-8085.2023.e93370Keywords:
Wage inequality, Gender inequality, Motherhood Penalty, Event study, RAISAbstract
The wage inequality between women and men persists despite efforts to promote gender equality. This study investigates the motherhood penalty hypothesis, raised by scholars in the last decade, suggesting that the birth of a baby exacerbates wage inequality. After having a child, women have their wages and participation in the labor market reduced as compared to men, indicating that women are penalized by motherhood. The methodology of event studies was used, comparing the earnings of mothers in relation to fathers around childbirth, with data identified from the Annual Social Information List (RAIS) for Brazil. Both women's wages and participation in the labor market decline after the birth of a baby. For men, the effect, although also negative, is of lesser magnitude. The impacts on motherhood were persistent, so that 10 years after birth, mothers' wages did not return to pre-birth levels. Inequality in the labor market is strongly related to the birth of a baby. This result contributes to the debate on gender wage inequality in Brazil.
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