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Economic Returns to Parenthood by Marital Status
Mon, August 10, 5:10 to 6:10pm PDT (5:10 to 6:10pm PDT), Hilton San Francisco Union Square, Floor: Ballroom Level, Imperial BAbstract
This article aims to explore the relationship between household specialization and economic returns to parenthood by marital status. Using the detailed decomposition analyses, we explore the components of varying economic returns to parenthood by gender and marital status. We find differential fatherhood premium across marital statuses. We see fatherhood premium in annual earnings is only among currently married. For women, we witnessed a motherhood penalty across all marital statuses. Regardless of gender, the parenthood penalty among never-married singles and cohabiting singles can be attributed partially to the relatively lower level of education among parents. We see the largest degree of specialization among currently married. Labor supply, measured in weeks worked and usual hours worked in a week, found to have different effects on returns on parenthood across gender and marital status. Across all groups in this study, married fathers are the only group with longer work hours compared to non-parents of the same gender and marital status. The portion explained by the labor supply is larger among women. Regardless of marital status, mothers work less than non-mothers, and that accounts for a significant portion of the motherhood penalty. Despite fatherhood premium and motherhood penalty among currently married, we see a positive return to parenthood in terms of family income. Gendered household specialization explains the results. Among currently married, men increase labor supply while women decrease labor supply when they have children. The difference in work hours between parent and non-parent explains about half of the parenthood gap among currently married. On the other hand, becoming a parent for cohabiting couples involve reduced work hours for both men and women. As a result, cohabiting individuals suffer a loss in family income when they become a parent.