The Impact of Parenthood on Labour Market Outcomes of Women and Men in Poland

TL;DR

This study investigates how parenthood influences gender income disparities in Poland, revealing that parenthood significantly contributes to income gaps, with notable pre- and post-birth effects on both mothers and fathers.

Contribution

The paper applies a novel adaptation of the placebo event history method to low-resolution data to analyze parenthood's impact on gender income gaps in Poland.

Findings

Parenthood accounts for the gender income gap in Poland.

Mothers' income decreases by about 20% after birth.

Fathers' income exceeds non-fathers' income both before and after birth.

Abstract

We examine the gender gap in income in Poland in relation to parenthood status, employing the placebo event history method adapted to low-resolution data (Polish Generations and Gender Survey). Our analysis reveals anticipatory behavior in both women and men who expect to become parents. We observe a decrease of approximately 20 percent in mothers' income post-birth. In contrast, the income of fathers surpasses that of non-fathers both pre- and post-birth, suggesting that the fatherhood child premium may be primarily driven by selection. We note an increase (decrease) in hours worked for fathers (mothers). Finally, we compare the gender gaps in income and wages between women and men in the sample with those in a counterfactual scenario where the entire population is childless. Our findings indicate no statistically significant gender gaps in the counterfactual scenario, leading us to conclude that parenthood drives the gender gaps in income and wages in Poland.