Unpacking the Child Penalty Using Personnel Data: How Promotion Practices Widen the Gender Pay Gap
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Series
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Speaker(s)Shintaro Yamaguchi (University of Tokyo, Japan)
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FieldEmpirical Microeconomics
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LocationTinbergen Institute, Roeterseiland campus, E5.22
Amsterdam -
Date and time
June 09, 2026
16:00 - 17:00
Abstract
We estimate the child penalty using detailed personnel records that allow decomposition into distinct pay components. The penalty initially arises from reductions in time-based pay after childbirth. Over time, job-rank-based pay becomes increasingly significant. These effects are interconnected: reduced working hours lead to lower performance evaluations, which subsequently limit promotion opportunities. Our 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 business case for organizational reform. Joint paper with Yoko Okuyama and Takeshi Murooka.