Department of Economics
751 20 Uppsala, SWEDEN
NBER Working Papers and Publications
|December 2017||Parenthood, Family Friendly Firms, and the Gender Gaps in Early Work Careers|
with V. Joseph Hotz, Per Johansson: w24173
We consider the role that firm attributes play in accounting for the divergence in the careers of women and men, with the onset of parenthood. We exploit a matched employer-employee data set from Sweden that provides a rich set of firm and worker attributes. We index firms by their “family friendliness” and analyze the effect of firm family friendliness on the career gap between mothers and fathers. We find that women disproportionately sort into family friendly firms after first birth and that the wage penalty to motherhood is diminished by being assigned to a more family friendly firm or job. We also find that working in a more family friendly firm or job diminishes the parenthood penalty to labor earnings and makes it easier for mothers to work more hours. At the same time, the smaller ...