Estimation of Parenthood Wage Penalties and Benefits in Ukraine

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Estimation of Parenthood Wage Penalties and Benefits in Ukraine

Journal Title: Демографія та соціальна економіка - Year 2016, Vol 2, Issue

Abstract

The article outlines parenthood wage penalties and benefits in Ukraine. A wage gap among parents with children of different ages was determined with using of econometric models considering social-demographic characteristics and employment status of parents. Mothers of children under the age of 3 years earn from 25 to 39 % less than mothers of children of school age. Wage gap for those who have children of pre-school age (3–6 years) is 8–12 %. Calculations demonstrate significant wage benefits for parents with high education. Such categories face lower wage penalties in comparison with low-educated parents. There is a difference in financial penalties and benefits among parents with low and high income: the most significant penalties apply to low-income women workers. Parental wage penalties apply also to people employed in different economic sectors and with different employment status. At the same time, some jobs in Ukraine are not «family friendly». The research results stress the necessity of social policy, which creates opportunities for beneficial combination of parenthood and employment.

Authors and Affiliations

I. O. Kurilo, V. P. Dumanska

Keywords

parenthood motherhood financial costs of motherhood motherhood wage penalties financial benefits of parenthood gender gap of labor income estimation of financial losses creating conditions to combine employment with parenthood

EP ID EP177410
DOI 10.15407/dse2016.02.011
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