Can Motherhood Earnings Losses Be Ever Regained? Evidence From Canada

Abstract

This study examines earnings losses associated with motherhood using longitudinal administrative Canadian data. Contrary to the endogenous motherhood hypothesis, the author found no dips in earnings for women during their prechildbirth years. Although the results show that earnings losses incurred by mothers in the year of childbirth and the year thereafter were substantial, it was found that these earnings losses declined over the postchildbirth years, and for mothers who returned to their prechildbirth employers, the earnings recovery process was rapid, indicating that firm-specific human capital might play an important role.