Exploring Gender Wage Gap: Motherhood and Job Dynamics

 
Why Do the Earnings of Male and Female Graduates
Diverge? The Role of Motherhood and Job Dynamics
Aedín Doris, Dónal O’Neill and Olive Sweetman
Maynooth University
 
Results are based on analysis of strictly controlled Research Microdata Files ( ELD and GUI) provided by the Central Statistics Office (CSO).
The CSO does not take any responsibility for the views expressed or the outputs generated from this research.
Background
 
Gender differences in
earnings are particularly
pronounced among top
earners.
 
There is evidence that this gap
widens over the working
career and is particularly
pronounced for women with
children.
 
Some authors have found that
gap widens more for some
occupations/degrees.
Our paper
 
We use  rich administrative
data covering earnings from
2010-2020 for a large sample
of Irish graduates to examine
gender differences in earnings
dynamics and returns to a
broad range of fields of study.
 
We look for potential
explanations for this gender
gap, focusing on childbirth
and job mobility.
 
In addition we use a
supplemental data set to look
at changes in hours of work
associated with childbirth.
Data
 
The Educational Longitudinal
Database (ELD) matches
graduates across a range of
pseudonymised administrative
sources including education data
earnings data and data on
benefit receipt.
 
Other background information
includes type of school
attended, local area deprivation
statistics, Leaving Cert points,
within school ranking, age and
gender.
 
Random sample
 
 
 
 
Gender
Earnings
Gap Following
Graduation
.
 
- Gender
Earnings Gap
grows over
time.
- Almost all of
this gap arises
within field of
study
.
 
Gender
Earnings
gap by
Field of
Study
 
Gender
Earnings gap
by Field of
Study – 
All
Men v
Women with
Children.
 
Gender
Earnings gap
by Field of
Study – Men V
Women with
no children
 
Gender
Earnings Gap
Dynamics – by
broad field:
Business & Law
STEM
Other
 
28%
 
23%
 
28%
Summary
 
Gender gap increases
over time within field.
 
This is particularly true
for women with
children.
 
This holds for all three
broad  field groups.
 
 
 
Earnings
Change
around
childbirth -
Mothers
 
-23%,
 
E
a
r
n
i
n
g
s
C
h
a
n
g
e
a
r
o
u
n
d
c
h
i
l
d
b
i
r
t
h
 
M
o
t
h
e
r
s
 
a
n
d
F
a
t
h
e
r
s
 
Motherhood wage penalty: 27%
 
What explains this
gap?
 
Differences in Mobility
 
Hours of work
 
 
 
 
 
W
h
a
t
 
e
x
p
l
a
i
n
s
 
t
h
i
s
g
a
p
 
-
 
M
o
b
i
l
i
t
y
?
 
Decompose Gender gap
In Wage growth :
Difference in earnings
changes:
i)for stayers (ii) for
switchers.
iii) difference in mobility
rates.
 
 
 
 
D
e
c
o
m
p
o
s
i
t
i
o
n
o
f
 
t
h
e
 
G
e
n
d
e
r
D
i
f
f
e
r
e
n
c
e
 
i
n
W
a
g
e
 
G
r
o
w
t
h
W
h
a
t
 
e
x
p
l
a
i
n
s
 
t
h
i
s
g
a
p
 
-
 
M
o
b
i
l
i
t
y
?
 
Gender d
ifferences in
earnings growth is almost
entirely explained by the fact
that men experience higher
earnings gains than women,
particularly as ‘stayers’;
 Gender differences in
mobility account for very
little of the observed gap.
 
 
 
W
h
a
t
 
e
x
p
l
a
i
n
s
 
t
h
i
s
g
a
p
 
 
H
o
u
r
s
 
o
f
w
o
r
k
?
 
Since we do not have hours
in the ELD, we do a “back of
the envelope” exercise  to
see the likely role of hours
using a supplemental data
set, the GUI infant cohort.
 
 
 
 
 
 
W
h
a
t
 
e
x
p
l
a
i
n
s
 
t
h
i
s
g
a
p
 
 
H
o
u
r
s
 
o
f
w
o
r
k
?
 
Restrict our sample to first-
time mothers with higher
education who were working
prior to childbirth.
 
The GUI infant cohort has
information on work hours
for both mothers and fathers
in most waves but also asks
mothers about their hours of
work before their baby was
born.
 
 
 
 
 
 
H
o
u
r
s
 
o
f
 
W
o
r
k
a
r
o
u
n
d
c
h
i
l
d
b
i
r
t
h
 
f
o
r
M
o
t
h
e
r
s
 
a
n
d
F
a
t
h
e
r
s
W
h
a
t
 
e
x
p
l
a
i
n
s
 
t
h
i
s
g
a
p
 
 
H
o
u
r
s
 
o
f
w
o
r
k
?
 
Mothers’ hours of work
fall from an average of 38
hours to 33 hours in the
year after childbirth, a
13% reduction.
 
Fathers worked on
average 41 hours after
childbirth.
 
 
 
 
 
W
h
a
t
 
e
x
p
l
a
i
n
s
 
t
h
i
s
g
a
p
 
 
H
o
u
r
s
 
o
f
w
o
r
k
?
 
13% fall in hours  (GUI)
 
27% fall in weekly
earnings (ELD)
 
Suggests that about 
half
of the fall in earnings is
accounted for by a fall in
hours.
 
 
 
 
Conclusion (1)
 
Gender earnings gaps
emerge early on in
graduates’ careers.
 
This occurs within field
of study and after
controlling for a range of
other background factors
 
 
 
 
 
 
Conclusion (2)
 
The gap is particularly
apparent for women
with children and
coincides with childbirth.
 
There is no striking
differences between
fields of study
 
 
 
 
Conclusion (3)
 
Explanations
 
Wage dynamics are
driven by job stayers and
not job mobility.
 
Hours of work may
contribute about half of
the earnings reductions.
 
 
 
 
 
Conclusion (4)
 
Reduction in Hours:
 
Changes in work
practices
 
Re-allocation of time
within household.
 
 
 
 
 
 
Conclusion (5)
 
 
 
Substantial proportion not
related to hours.
 
May also need more
research on personnel
practices within firms
following childbirth.
 
Report gender gap in
earnings changes for job
stayers in the firm
 
 
 
 
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The study by Aedín Doris, Dónal O’Neill, and Olive Sweetman from Maynooth University delves into the reasons behind the diverging earnings of male and female graduates. It highlights the impact of motherhood and job dynamics on the gender wage gap, shedding light on the disparities in earnings between men and women in the workforce.


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  1. Why Do the Earnings of Male and Female Graduates Diverge? The Role of Motherhood and Job Dynamics Aed n Doris, D nal O Neill and Olive Sweetman Maynooth University Results are based on analysis of strictly controlled Research Microdata Files ( ELD and GUI) provided by the Central Statistics Office (CSO). The CSO does not take any responsibility for the views expressed or the outputs generated from this research.

  2. Gender differences in earnings are particularly pronounced among top earners. There is evidence that this gap widens over the working career and is particularly pronounced for women with children. Background Some authors have found that gap widens more for some occupations/degrees.

  3. We use rich administrative data covering earnings from 2010-2020 for a large sample of Irish graduates to examine gender differences in earnings dynamics and returns to a broad range of fields of study. Our paper We look for potential explanations for this gender gap, focusing on childbirth and job mobility. In addition we use a supplemental data set to look at changes in hours of work associated with childbirth.

  4. The Educational Longitudinal Database (ELD) matches graduates across a range of pseudonymised administrative sources including education data earnings data and data on benefit receipt. Other background information includes type of school attended, local area deprivation statistics, Leaving Cert points, within school ranking, age and gender. Data Random sample

  5. Gender Earnings Gap Following Graduation.

  6. - Gender Earnings Gap grows over time. - Almost all of this gap arises within field of study.

  7. Gender Earnings gap by Field of Study

  8. Gender Earnings gap by Field of Study All Men v Women with Children.

  9. Gender Earnings gap by Field of Study Men V Women with no children

  10. Gender Earnings Gap Dynamics by broad field: Business & Law STEM Other 28% 23% 28%

  11. Gender gap increases over time within field. This is particularly true for women with children. Summary This holds for all three broad field groups.

  12. Earnings Change around childbirth - Mothers -23%,

  13. Motherhood wage penalty: 27% Earnings Earnings Change Change around around childbirth childbirth Mothers and Mothers and Fathers Fathers

  14. Differences in Mobility Hours of work What explains this gap?

  15. Decompose Gender gap In Wage growth : Difference in earnings changes: i)for stayers (ii) for switchers. iii) difference in mobility rates. What explains this gap - Mobility? Mobility?

  16. Decomposition Decomposition of the Gender of the Gender Difference in Difference in Wage Growth Wage Growth

  17. Gender differences in earnings growth is almost entirely explained by the fact that men experience higher earnings gains than women, particularly as stayers ; Gender differences in mobility account for very little of the observed gap. What explains this gap - Mobility? Mobility?

  18. Since we do not have hours in the ELD, we do a back of the envelope exercise to see the likely role of hours using a supplemental data set, the GUI infant cohort. What explains this gap Hours of Hours of work? work?

  19. Restrict our sample to first- time mothers with higher education who were working prior to childbirth. What explains this gap Hours of Hours of work? work? The GUI infant cohort has information on work hours for both mothers and fathers in most waves but also asks mothers about their hours of work before their baby was born.

  20. Hours of Work Hours of Work around around childbirth for childbirth for Mothers and Mothers and Fathers Fathers

  21. Mothers hours of work fall from an average of 38 hours to 33 hours in the year after childbirth, a 13% reduction. What explains this gap Hours of Hours of work? work? Fathers worked on average 41 hours after childbirth.

  22. 13% fall in hours (GUI) 27% fall in weekly earnings (ELD) What explains this gap Hours of Hours of work? work? Suggests that about half of the fall in earnings is accounted for by a fall in hours.

  23. Gender earnings gaps emerge early on in graduates careers. This occurs within field of study and after controlling for a range of other background factors Conclusion (1)

  24. The gap is particularly apparent for women with children and coincides with childbirth. Conclusion (2) There is no striking differences between fields of study

  25. Explanations Wage dynamics are driven by job stayers and not job mobility. Conclusion (3) Hours of work may contribute about half of the earnings reductions.

  26. Reduction in Hours: Changes in work practices Conclusion (4) Re-allocation of time within household.

  27. Substantial proportion not related to hours. May also need more research on personnel practices within firms following childbirth. Conclusion (5) Report gender gap in earnings changes for job stayers in the firm

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