Work-family policy trade-offs for mothers? Unpacking the cross-national variation in motherhood earnings penalties

Abstract

Recent scholarship suggests welfare state interventions, as measured by policy indices, create gendered trade-offs wherein reduced work–family conflict corresponds to greater gender wage inequality. The authors reconsider these trade-offs by unpacking these indices and examining specific policy relationships with motherhood-based wage inequality to consider how different policies have different effects. Using original policy data and Luxembourg Income Study microdata, multilevel models across 22 countries examine the relationships among country-level family policies, tax policies, and the motherhood wage penalty. The authors find policies that maintain maternal labor market attachment through moderate-length leaves, publicly funded childcare, lower marginal tax rates on second earners, and paternity leave are correlated with smaller motherhood wage penalties.