This paper investigates the parenthood penalty in Indonesian labor markets, with a focus on gender disparities. It uses longitudinal data from the Indonesia Family Life Survey from 1993 to 2014 and employs a difference-in-differences approach with staggered adoption to estimate the impact of parenthood on labor market participation for both men and women. The results reveal that the birth of a child has a significant and persistent negative effect on women's employment, with the penalty extending up to six years after childbirth. In contrast, men experience only short-lived and insignificant changes in employment after fatherhood. The analysis further identifies substantial heterogeneity across different subgroups. Women in urban areas and those with higher levels of education experience larger and more prolonged penalties, while rural women, those with lower levels of education, and those with extended family support recover more quickly. The findings highlight the role of socioeconomic factors in moderating the parenthood penalty and offer critical insights for policies aimed at promoting gender equality in the labor market.
Authors
Fajardo Gonzalez,Deisy Johanna, Hasanbasri,Ardina Roosiany, Rios Avila,Fernando
- DOI
- https://dx.doi.org/10.1596/1813-9450-10973
- Disclosure Date
- 2024/11/12
- Disclosure Status
- Disclosed
- Doc Name
- Is There a Gendered Parenthood Penalty in Indonesian Labor Markets?
- Originating Unit
- Off of Sr VP Dev Econ/Chief Econ (DECVP)
- Pages
- 33
- Published in
- United States of America
- Series Name
- Policy Research working paper; PEOPLE;
- Unit Owning
- EFI-EAP-POV-Poverty and Equity (EEAPV)
- Version Type
- Final
- Volume No
- 1
Table of Contents
- Introduction 4
- Institutional Context, Data, and Descriptive Statistics 7
- The Indonesia Family Life Survey 7
- Year of First Pregnancy and Work Histories 9
- Empirical Approach 14
- Treatment Identification 14
- Staggered Identification 14
- Identifying Assumptions 17
- Results 18
- Main Estimation Results 18
- The Impact of Pregnancy 21
- Adding Controls: Conditional PTA 21
- Heterogeneity Analysis 23
- Validity of Assumptions and Robustness Checks 28
- Concluding Remarks 30
