Wage Differential between Mothers and Non-Mothers in Brazil: A Decomposition Study for Selected Age Groups

Iracy Pimenta, University of Porto
Simone Wajnman, Centro de Desenvolvimento e Planejamento Regional (CEDEPLAR)
Gilvan R. Guedes, Universidade Federal de Minas Gerais & Indiana University

The study analyzed the phenomenon of the motherhood penalty in the Brazilian labor market by decomposing the wage differential between mothers and non-mothers, considering different stages of the life course based on age groups. Using data from the 2015 National Household Sample Survey (PNAD), Oaxaca-Blinder decompositions were estimated for average hourly wages, and the method of Firpo, Fortin, and Lemieux (2009, 2018) was applied to the quantiles of the wage distribution among mothers and non-mothers aged 25 to 34 and 35 to 44 years-old. The results indicated that the attributes of mothers and non-mothers explain most of the wage differential between the two groups. Differences in schooling, hours dedicated to household chores, and occupational position were the main contributing characteristics, while age and the presence of a spouse in the household had an attenuating effect. In the quantile decompositions, a greater motherhood penalty was found at the top of the distribution, justified by the high opportunity cost for high-income women and wage rigidity at the lower end due to the minimum wage. Regarding the age perspective, a slight reduction in the wage differential between mothers and non-mothers was observed in the older age group compared to the younger one.

Keywords: Decomposition analysis, Inequality, Disadvantage and Discrimination, Human Capital, Education, and Work, Gender Dynamics

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