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Evidence from the HILDA survey shows that having children creates a large, persistent reduction in women’s earnings, averaging 55% over the five years after parenthood. Personal income tax data indicates the gap improves slightly but remains high up to ten years. The analysis attributes the gap mainly to lower maternal participation and reduced working hours, and also finds flexibility access supports continued employment.",{"@graph":63,"@context":118},[64,80,101],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":11,"@type":70,"position":76},"https://docshare.wps.com/template/presentations/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/children-and-the-gender-earnings-gap-evidence-for-australia-treasury-working-paper-2023-02-march-2023/176440/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/children-and-the-gender-earnings-gap-evidence-for-australia-treasury-working-paper-2023-02-march-2023/176440.png","ImageObject",442,249,{"name":88,"@type":89},"Logic","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/vnd.openxmlformats-officedocument.wordprocessingml.document","2026-10-19","2026-09-02",true,{"@type":98,"interactionType":99,"userInteractionCount":8},"InteractionCounter",{"@type":100},"ViewAction",{"@type":102,"mainEntity":103},"FAQPage",[104,110,114],{"name":105,"@type":106,"acceptedAnswer":107},"What is the paper’s main goal regarding the gender earnings gap?","Question",{"text":108,"@type":109},"To estimate how the arrival of children affects the gender earnings gap in Australia and identify the motherhood penalty and its persistence over time.","Answer",{"name":111,"@type":106,"acceptedAnswer":112},"How do the authors measure the impact of children on earnings?",{"text":113,"@type":109},"They use an event study approach with the HILDA survey and extend it with Australian Tax Office personal income tax administrative data.",{"name":115,"@type":106,"acceptedAnswer":116},"What explains most of the earnings gap after parenthood?",{"text":117,"@type":109},"The gap is attributed primarily to lower participation rates and reduced working hours among mothers, and to a lesser extent to changes in hourly wages.","https://schema.org",{"og:url":78,"og:type":120,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":122,"canonical":78},"index,follow",{"doc_id":124,"site_id":56},176440,1791554075,{"code":4,"msg":5,"data":127},{"doc_id":124,"user_id":128,"nickname":88,"user_avatar":129,"doc_module":9,"category_id":8,"category_name":11,"doc_title":59,"doc_description":61,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":8,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":135,"language":136,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":137,"faqs":138,"seo_title":139,"seo_description":61,"update_tm":140,"read_time":25},1099513958762,"https://ap-avatar.wpscdn.com/avatar/1000023916a998db790?x-image-process=image/resize,m_fixed,w_180,h_180&k=1784791008015729253","Children and the Gender Earnings Gap: Evidence for Australia\nElif Bahar, Natasha Bradshaw, Nathan Deutscher and Maxine Montaigne\nTreasury Working Paper\n2023–02\nDate created: March 2023\n© Commonwealth of Australia 2023\nISBN 978-1-925832-68-6\nThis publication is available for your use under a \u0013 HYPERLINK \"http://creativecommons.org/licenses/by/3.0/au/deed.en\" \u0014Creative Commons BY Attribution 3.0 Australia\u0015 licence, with the exception of the Commonwealth Coat of Arms, the Treasury logo, photographs, images, signatures and where otherwise stated. The full licence terms are available from \u0013 HYPERLINK \"http://creativecommons.org/licenses/by/3.0/au/legalcode\" \u0014http://creativecommons.org/licenses/by/3.0/au/legalcode\u0015.\nUse of Treasury material under a \u0013 HYPERLINK \"http://creativecommons.org/licenses/by/3.0/au/deed.en\" \u0014Creative Commons BY Attribution 3.0 Australia\u0015 licence requires you to attribute the work (but not in any way that suggests that the Treasury endorses you or your use of the work).\nTreasury material used 'as supplied'\nProvided you have not modified or transformed Treasury material in any way including, for example, by changing the Treasury text; calculating percentage changes; graphing or charting data; or deriving new statistics from published Treasury statistics – then Treasury prefers the following attribution:\nSource: The Australian Government the Treasury\nDerivative material\nIf you have modified or transformed Treasury material, or derived new material from those of the Treasury in any way, then Treasury prefers the following attribution:\nBased on The Australian Government the Treasury data\nUse of the Coat of Arms\nThe terms under which the Coat of Arms can be used are set out on the Department of the Prime Minister and Cabinet website (see \u0013 HYPERLINK \"http://www.pmc.gov.au/government/commonwealth-coat-arms\" \u0014www.pmc.gov.au/government/commonwealth-coat-arms\u0015).\nOther uses\nEnquiries regarding this licence and any other use of this document are welcome at:\nManager\u000bMedia Unit\u000bThe Treasury\u000bLangton Crescent \u000bParkes ACT 2600\nEmail: \u0013 HYPERLINK \"mailto:media@treasury.gov.au\" \u0014media@treasury.gov.au\u0015\nChildren and the Gender Earnings Gap: Evidence for Australia\nElif Bahar, Natasha Bradshaw, Nathan Deutscher and Maxine Montaigne\n2023-02\nMarch 2023\nAbstract\nThis paper uses an event study approach to estimate the impact of children on the gender earnings gap in Australia. We use the Household, Income and Labour Dynamics in Australia (HILDA) survey to show the arrival of children has a large and persistent impact on the gender earnings gap, reducing female earnings by 55 per cent, on average, in the 5 years following parenthood. We further show, using personal income tax data collected by the Australian Tax Office (ATO), that this gap improves only slightly but remains high in the 10 years following the arrival of children. We attribute the gap in earnings to lower participation rates and reduced working hours amongst mothers. Although the decline in earnings for women is very similar regardless of their breadwinner status in the household pre\u001echildren, women with greater access to workplace flexibility are more likely to remain employed after having children.\nJEL Classification Numbers: J13, J16, J22, J31\nKeywords: children, gender earnings gap, labour supply, wage differential, norms, discrimination, workplace policies\nNathan Deutscher\nMacroeconomic Analysis and Policy Division\nMacroeconomic Group\nThe Treasury\nLangton Crescent\nParkes ACT 2600\nIntroduction\nDespite convergence in recent decades, there remain large disparities in earnings between men and women in Australia, as in many other countries. International literature has shown that the differential impacts of children on men’s and women’s earnings is the primary driver of gender earnings gaps (Kleven et al. 2019a) and has been documented in varying magnitudes in a number of countries (Kleven et al. 2019b). This divergence in earnings following entry into parenthood is ofte","cbCaijEdbEsJcSxQ","https://ap.wps.com/l/cbCaijEdbEsJcSxQ","docx",1242759,43,"English","# Abstract\n# Introduction\n## Background: Gender earnings disparities and child effects\n## Event study approach and empirical strategy\n## Motherhood penalty and persistence over time\n## Decomposition of the gender earnings gap\n## Potential drivers and mechanisms","[{\"question\":\"What is the paper’s main goal regarding the gender earnings gap?\",\"answer\":\"To estimate how the arrival of children affects the gender earnings gap in Australia and identify the motherhood penalty and its persistence over time.\"},{\"question\":\"How do the authors measure the impact of children on earnings?\",\"answer\":\"They use an event study approach with the HILDA survey and extend it with Australian Tax Office personal income tax administrative data.\"},{\"question\":\"What explains most of the earnings gap after parenthood?\",\"answer\":\"The gap is attributed primarily to lower participation rates and reduced working hours among mothers, and to a lesser extent to changes in hourly wages.\"}]","Children and the Gender Earnings Gap: Evidence for Australia - Treasury Working Paper - 2023-02 - March 2023 | DOCX",1788324491]