| Abstract: |
Using a comprehensive individual panel dataset in China and an event study
method, we examined the effects of having a child on gender inequality from
the perspectives of labor market outcomes and its mechanisms. Results show
that becoming a mother implies a sharp decline in labor earnings, labor market
participation, working hours and wage rate, while fathers' outcomes remain
unaffected. These outcomes are driven by two potential channels: career
choices and social norms. After having a child, mothers have a higher
likelihood for engaging in informal jobs and less possibility of being
promoted if they work in the formal sector. Moreover, social norms towards
gender roles lead mothers to devote more time to housework and babysit, which
generate motherhood earnings penalty in labor market. Finally, well-being
analysis shows that subjective happiness and life satisfaction of both males
and females are barely not changed after childbirth, and females experience an
increase in social status after child arrival. |