Investigating the motherhood-caregiver penalty

Abstract

There are many factors influencing wages that are connected with the individual attributes of employees and workplaces or describe the general situation of the labour market. However, family duties, especially providing care to children or
the elderly, are also important determinants affecting women economic activity and their wages because the primary caregivers are mostly women, who are penalized because of that. The aim of this research is to identify factors influencing monthly wages in Poland, especially to answer the question concerning the existence of caregiver penalty. These goals fill the gap in the literature and result from the necessity of monitoring the situation of women in the labour market. The research is provided on the basis of microdata, originating from the Polish Labour Force Survey. In our analysis, we estimate econometric models, which explain monthly incomes obtained by all respondents regardless of gender, male and female employees, and women aged 25-54 years. Explanatory variables describe the individual characteristics of employees, the structure of households and workplaces. Using econometric models, we identify the determinants of monthly wages for each analyzed group of respondents. We also conclude that male employees earn more than female ones and married men earn more than unmarried ones whereas married women earn less than unmarried female employees. According to the parameter estimates, we may claim that the caregiver penalty exists in Poland but mostly among female employees. We detect the motherhood penalty and eldercare penalty. However, the latter touches only women in age 25-54 years.