Motherhood Penalty in Indonesia

Kadek Swarniati, Universitas Indonesia
Diahhadi Setyonaluri, Universitas Indonesia

This study examines the negative impacts of motherhood on many aspects of the labor market outcomes in Indonesia: the probability of women remaining employed, their prospects of securing positions in the formal sector, and their earnings. The study expands its investigation beyond merely examining wages. It looks on to the extent of the negative impact on a woman's career progression throughout the period before and after the birth of her first child, as well as for each subsequent child. The study uses data from the Indonesia Family Life Survey (IFLS) and employs a panel fixed effects regression model. The findings show that Indonesian women mainly face a motherhood penalty as they exit the workforce after giving birth to their first child. The primary obstacle encountered by these women is the challenging process of returning to the labor market after leaving. The study indicates that Indonesian women face a double penalty related to motherhood. The initial penalty arises after the birth of the first child and continues over the long term. Women also experience further penalties with each additional child.

Keywords: Gender Dynamics, Fertility, Families, Unions and Households, Human Capital, Education, and Work

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