Using the Labour Force Survey data for the period 2014 to 2018 for Serbia,
this paper explores the effect of parenthood on the labour market
trajectories of parents, the so-called ?parenthood penalty?. We find that
mothers are less likely than non-mothers to be active in the labour market
when their children are very young, but this effect is transitory, and
mothers of older children are actually more likely to be active than
non-mothers. Similarly, we observe that mothers of small children are less
likely to work overtime than non-mothers, but also that both parents of
older children are more likely to engage in overtime work than men and women
without children. We find a motherhood penalty in terms of hourly wages for
mothers with younger children, but the penalty is not significant as
children become older. By contrast, fathers are more likely to be active
than non-fathers. We do not find an effect of fatherhood on hours worked or
hourly wages. Overall, our results suggest that the motherhood penalty is
present in Serbia in the early stages when children are young, but
motherhood does not seem to have lasting effects on the labour market
participation, hours worked, or wage rates of mothers. We do not find
evidence of a fatherhood bonus, but we find that fathers are more likely to
be active than non-fathers.