Motherhood Penalty in Labor Market: Evidence from Brazil

Orientador(a): Gustavo Gonzaga

Co-orientador(a): Claudio Ferraz

I investigate how motherhood impacts women in the Brazilian labor market. Social norms that regard women’s role as more ”family-oriented,” unequal division of non-market work, and the lack of accessible free childcare for all working mothers could impact their labor supply, wages, and career path. Using an administrative linked employer-employee dataset, I estimate children’s impact on several labor market outcomes through an event-study methodology comparing mothers and non-mothers. While a child’s birth is associated with a decline in the mother’s earnings, participation in the formal labor market, and the probability of holding a managerial position, it is also associated with an increase in participation in the public sector and part-time jobs. In addition, I found that employment penalties are reduced if women are wealthier, college-graduated, and public sector employees. Further, I use household survey data to investigate short-run gender differences in child penalties. I find a decrease in mothers´ wages, employment, and an increase in the probability of holding an informal job after the stability period in the formal labor market. Men do not present changes in labor market outcomes due to parenthood.