| Number |
CREPEDP-165 |
| Publication Date |
February 2025 |
| Title |
Unpacking the Child Penalty Using Personnel Data:
How Promotion Practices Widen the Gender Pay Gap
|
| Authors |
Yoko Okuyama, Takeshi Murooka, Shintaro Yamaguchi
|
| Abstract |
We estimate the child penalty using detailed personnel records that enable decomposition
into distinct pay components. Our analysis reveals that the penalty is initially driven by reductions
in time-based pay following childbirth. However, job-rank-based pay becomes increasingly
significant over time, emerging as the dominant factor by the 15-year mark. These effects
are interconnected: reduced working hours lead to lower performance evaluations, which subsequently
limit promotion opportunities. Our theoretical model demonstrates that current promotion
practices, which reward extended hours at entry-level positions, can generate production
inefficiency. This finding suggests that addressing promotion practices could simultaneously
reduce gender inequality and improve talent allocation, making a compelling business case for
organizational reform. |
| Keywords |
Child penalty, promotion, management practice, personnel economics, internal labor
markets, gender pay gap, career progression
|
| Other information |
Paper in English (78 pages) |