A significant source of research on the 'child penalty' is a 2019 paper titled 'Child Penalties Across Countries: Evidence and Explanations.' Authored by Henrik Kleven, Camille Landais, Johanna Posch, Andreas Steinhauer, and Josef Zweimüller, it was published in *AEA Papers and Proceedings* (Volume 109, pages 122-126). The study provides evidence and explanations for the impact of childbirth on women's earnings across different countries, making it a key reference in the field.

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Research reveals that a primary driver for the earnings disparity between men and women is the arrival of children. Following the birth of a first child, women's earnings tend to drop significantly and this reduction often becomes permanent. Conversely, men's earnings are typically unaffected by the birth of a child.

Divergent Impact of Childbirth on Men's and Women's Earnings

To cite the ebook, use The CORE Econ Team 2023 The Economy 2.0: Microeconomics Open access e-text https://core-econ.org/the-economy/.

To cite a unit, use The CORE Econ Team 2023 The Economy 2.0: Microeconomics Open access e-text https://core-econ.org/the-economy/ Unit [unit number] (url).

CORE Econ - The Economy 2.0: Microeconomics

The 'child penalty' is a term used to describe the significant and often lasting decrease in a woman's earnings that typically occurs following the birth of her first child.

Child Penalty

Kleven et al. (2019) Study on Child Penalties

The gender division of labour refers to the systematic differences in how men and women allocate their time between paid and unpaid work. This is often observed within families, where women are more likely to undertake a larger share of domestic work and childcare.

Gender Division of Labour

In the United States, maternity leave is often unpaid, which can cause a temporary cessation of earnings for women who take time off after childbirth. This represents a significant financial interruption and is a factor in the earnings disparity between men and women. The case of Sophia, who took short, unpaid maternity leaves, illustrates this phenomenon.

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