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Mothers tend to receive lower wages than comparable childless women. This 'motherhood wage gap' has been reported in numerous studies. We summarize the existing empirical evidence on this topic using meta-analysis and test for several mechanisms which can be responsible for the persistence of the wage gap. Based on 208 wage effects of having exactly one child and 245 wage effects of the total number of children, we find an average motherhood wage gap of around 3.7 percent. While the gaps associated with the total number of children are mostly explained by the loss of mothers' human capital during child-related career breaks, the gaps associated with one child are predominantly driven by mothers' choice of jobs and occupations that pay less. The residual gap is smallest in Nordic countries, where public policies actively support gender equality and reconciliation of work and family, as well as Belgium and France, and largest in the post-socialist countries of Central and Eastern Europe and Anglo-Saxon countries.

We examine how much children and responsibilities related with them contribute towards the divergence of men's and women's wages, and consequently, to the formation of the gender wage gap. To derive the relative contribution of gender specific wage inequalities caused by the parenthood to the overall gender wage gap, we provide a modification of standard Oaxaca-Blinder decomposition method, and correct simultaneously for selection into work and parenthood. Contrary to our expectations, the findings show that most of the gender wage inequality is due to the positive wage gap between men who do and do not have children and not due to the wage penalty incurred by mothers.