Is There a Gendered Parenthood Penalty in Indonesian Labor Markets?

Johanna Fajardo-Gonzalez, Ardina Hasanbasri and Fernando Rios-Avila

No 10973, Policy Research Working Paper Series from The World Bank

Abstract: 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.

Date: 2024-11-12
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