Child penalties on single mother’s labour market outcomes: evidence from the United Kingdom

Abstract

What are the mechanisms underlying the child penalty? Is it a result of gendered roles, with women primarily focusing on domestic responsibilities and men engaging in the labour market? If so, how does this dynamic change when one single individual must assume both the provider and caregiver roles? This study aims to fill a gap in existing literature on gender equality by examining the impact of having a first child on the labour market outcomes of single mothers. Taking an event study approach and using the British Household Panel Survey (1991-2009), this study sheds light on the intricate relationship between fertility and gender inequality by exploring the different dynamics of the child penalty for single and partnered mothers in the United Kingdom. In doing so, it contributes to a deeper understanding of the challenges faced by mothers in achieving gender equality in the labour market. The findings indicate that the birth of their first child appears to generate a lasting gender gap in earnings for both groups of mothers, driven by the effect on hours of work, employment rates, and wage rates. However, contrary to initial predictions, there are no statistically significant differences in the way single and partnered mothers’ labour market outcomes are affected by the arrival of their first child. While partnered mothers encounter a long-term child penalty on earnings amounting to 49% and single mothers face a penalty of 37%, the difference between these two groups is not statistically significant.