Native-Immigrant Differences in the Effect of Children on the Gender Pay Gap

Abstract

This paper explores gender differences in the career paths of immigrant and native parents before and after childbirth using Spanish administrative data and an event study specification. I find an important gender pay gap emerging after childbirth for both immigrants and natives, but immigrants suffer from a higher loss in earnings than natives. I show important native-immigrant differences in potential drivers behind the gender pay gap. After childbirth, mothers reduce their labour participation and are more often unemployed, part-time and temporary employed than fathers. The gender gaps in labour participation and part-time work are higher for natives, while the gender gaps in unemployment and permanent employment for immigrants. Finally, I investigate whether the deterioration of mothers' career originates from workers' or employers' decisions. After childbirth, mothers quit their job less, but temporarily stop working and are dismissed more than fathers. The gender gap in temporary leaves is higher for natives, while the gender gap in dismissals for immigrants.