Little Girl Next to a Stroller

Paid Family Leave Reduces Women’s Wages, Increases The Gender Pay Gap

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Forbes April 16, 2017 By Tim Worstall There is, as we all know, a considerable head of steam under the idea that the United States should introduce paid family leave as a legal right. And perhaps it should. Yet there is a problem here, which is that the introduction will reduce women’s wages and thus increase the gender pay gap. …

Millennials Taking a Selfie

Millennial men are 50% more likely than women to blame gender discrimination for hurting their career opportunities

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Business Insider April 14, 2017 Lianna Brinded The gender pay gap is so huge it could take 170 years to close. And data shows that women working in some of the world’s largest professional services institutions are less likely to make it beyond the junior rung of the career ladder. However, a new report by private research software company Qualtrics …

IMF CHief Christine Lagarde

This could close the gender pay gap in 27 years

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CNN Money March 7, 2017 By Kathryn Vasel The gender pay gap has persisted for generations, but the end could be in sight for young women. Pay equity could be achieved in developed markets by 2044, according to new research released by Accenture on Tuesday. That’s 36 years earlier than previous estimates of 2080, and means women who graduate in …

States Struggle to Close Their Own Gender Pay Gaps

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PEW February 17, 2017 By Teresa Wiltz California has the most stringent equal pay laws in the nation. But among its own workers, the state is still struggling to close the pay gap between men and women. Women who work for the state earn 79 cents for every dollar that men earn, according to a 2014 report by the California …

3 signs your company is committed to gender equality

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The Business Journals February 16, 2017 By Dana Manciagli How far is far enough when it comes to promoting women’s advancement in the workplace? The accounting profession may be a barometer for U.S. businesses at large, making great strides for gender equality in some areas, while lagging in key metrics. The American Institute of CPAs (AICPA), for example, reports women …

Two College Graduates

Female Alumni of Top Colleges Still Make Less Money Than Men From Non-Selective Schools

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Slate February 16, 2017 By Christina Cauterucci Male alumni of elite universities can expect a substantial salary advantage over peers from less selective institutions. But the gender wage gap is wide enough to put women who graduated from even the country’s best colleges behind men who graduated from the least selective ones. In a recent study published in Social Science …

On Leadership The gender wage gap isn’t just unfair. It also ups the odds women get anxiety or depression.

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The Washington Post January 7, 2016 By Jena McGregor Studies have long shown that women are more likely to suffer from depression and anxiety than men. And attempts have long been made to explain it, citing everything from biological differences to the challenges women disproportionately face, such as balancing the additional child care and family responsibilities often expected of them …

Two Kids at the Beach


Hei-ock Kim

Henrik Kleven
Camille Landais
Jakob Egholt Søgaard
Working Paper 24219
1050 Massachusetts Avenue
Cambridge, MA 02138
January 2018

Despite considerable gender convergence over time, substantial gender inequality persists in all
countries. Using Danish administrative data from 1980-2013 and an event study approach, we
show that most of the remaining gender inequality in earnings is due to children. The arrival of
children creates a gender gap in earnings of around 20% in the long run, driven in roughly equal
proportions by labor force participation, hours of work, and wage rates. Underlying these “child
penalties”, we find clear dynamic impacts on occupation, promotion to manager, sector, and the
family friendliness of the firm for women relative to men. Based on a dynamic decomposition
framework, we show that the fraction of gender inequality caused by child penalties has increased
dramatically over time, from about 40% in 1980 to about 80%in 2013. As a possible explanation
for the persistence of child penalties, we show that they are transmitted through generations, from
parents to daughters (but not sons), consistent with an influence of childhood environment in the
formation of women’s preferences over family and career