Timing Is Not Everything: How Age of Children Affects Women ...U.S. Department of Commerce Economics...

1
U.S. Department of Commerce Economics and Statistics Administration U.S. CENSUS BUREAU census.gov This poster is released to inform interested pares of ongoing research and to encourage discussion. Any views expressed are those of the author and not necessarily those of the U.S. Census Bureau. Timing Is Not Everything: How Age of Children Affects Women’s Earnings in 20 Occupation Groups Liana Christin Landivar | Social, Economic, and Housing Statistics Division, U.S. Census Bureau, Department of Commerce Presented at the Annual Meeng of the Populaon Associaon of America San Diego, CA April 30-May 2, 2015 Women are also more likely to return to employment following a birth, and to return sooner than women in earlier generaons. Figure 1. Mean age at rst birth, 1970-2013 26.0 21.4 20 22 24 26 28 ‘13 2003 ‘93 ‘83 1973 Year Source: CDC/NCHS Naonal Vital Stascs System, 1970–2013 Age of mother Women with children are sll more likely to remain out of the labor force and work part me compared with women without children. Previous research indicates that mothers earn less than non-mothers. Researchers describe this earnings gap as a “wage penalty” or “family gap” associated with motherhood (Budig and England 2001; Waldfogel 1998). The wage gap is sensive to ming of children as well as educaonal aainment and type of employment (Anderson, Binder, and Krause 2003; Amuedo-Dorantes and Kimmel 2004). Ferlity delay and access to more resources should enable women in professional occupaons to maintain greater connuity of employment and experience a smaller wage penalty. On the other hand, women in professional occupaons are described as having extensive work-family conict because of long hours of work and intense parenng and employer demands (Stone 2007; Blair-Loy 2003). Women in these occupaons who scale back their work hours or re-enter aſter a career break are shown to experience career penales and a signicant wage cut (Epstein et al. 1999). Do mothers earn less than non-mothers? Is the earnings gap similar across occupaons? Do all women benet economically from ferlity delay or is the benet concentrated among women in parcular occupaons? Data and Sample Data: 2013 American Community Survey (ACS) Sample: Women ages 18 to 50, currently employed full-me, year-round (N= 29,240,583). Denions Mothers = Women between the ages of 18 and 50 with at least one own child aged 0 to 17 living at home. Preschool child = At least one child aged 0 to 5 living at home. Includes households that have a preschool child and a school-age child. School-aged child = At least one child aged 6 to 17 living at home. Excludes households with preschool-age children. Delayed ferlity = Women ages 30-50 with a preschool child; women ages 40-50 with a school-age child. This measure is a conservave approximaon, as women are grouped by age and may include a small number of women with early or normave ferlity with children at the top of the age group. It also assumes later ferlity among women with preschool and school-age children who are classied according to the age of the youngest child. Results Among full-me workers, women with children earn more than women without children. 37,598 37,226 36,266 No children Preschool children School-age children Figure 4. Median earnings of women ages 18-50 employed full-me, year-round, 2013 Source: 2013 American Community Survey Young mothers earn less than non-mothers, but older mothers earn more than non-mothers. Mothers between the ages of 18 and 29 and mothers ages 30 to 39 with school-age children experience an earnings penalty relave to women without children. Women who are between 40 and 50 with preschool children have a large earnings premium. The earnings gap between mothers and non-mothers varies by occupaon. Mothers in managerial and professional occupaons have an earnings premium. Larger earnings premium among mothers of preschoolers in computer, engineering, science, and legal occupaons, where mothers earn between $9,300 and $15,300 more per year. Mothers of school-age children earn substanally more than non-mothers in management, science, and computer occupaons, ranging from $8,700 to $9,400 per year. In non-managerial and professional occupaons: Mothers of preschoolers experience an earnings penalty, except among those working in sales or protecve service occupaons. The earnings gap is smaller between non-mothers and mothers of school-age children. Mothers of school-age children earn less than non-mothers in agricultural, food preparaon, and producon occupaons. Do mothers in managerial and professional occupaons earn more than non- mothers even if they have children when they are young? Conversely, can women in service, oce, construcon, or producon occupaons experience an earnings premium by delaying ferlity? Figure 7. Earnings penalty or premium by occupaon and age among mothers of preschool children, 2013* Source: 2013 American Community Survey *Compared with non-mothers in the same age group. Women in most managerial and professional occupaons experience an earnings premium so long as they are not young mothers. Ferlity at older ages is associated with an earnings premium. Among mothers of preschoolers, older age is associated with an earnings premium in most management and professional occupaons and protecve service, oce, and sales occupa ons. Mothers of preschoolers in science and educaon occupaons experience a premium at all ages. Having children at older ages does not translate into an earnings premium for women in construcon, producon, agriculture, health care support, cleaning and maintenance, or food preparaon, where mothers earn less than non-mothers or there is no stascal dierence in their earnings. Among mothers of school-age children, young age is associated with earnings penales in most occupaons relave to non-mothers. No occupaon provides a premium. Mothers of school-age children in engineering and legal occupaons, and health care praconers have large earnings penales among young mothers. Mothers in protecve service and cleaning and maintenance show no stascal dierence in earnings from non-mothers, even if they have their children young. Legal occupaons stand out for having among the largest premiums for delayed ferlity. Part of the earnings gap is a result of women going into dierent jobs within these elds. This may indicate that in this eld, the parenthood gap in earnings stems from unequal representaon across legal occupaons and is sensive to ferlity ming. Younger mothers may be on a dierent career track and may not easily reach earnings parity with non-mothers or late mothers. Summary Mothers are less likely to be employed than non-mothers, which results in a selecon eect among those who remain employed. Mothers with higher earnings prospects tend to remain in the labor force (Landivar 2014). As a result, mothers earn more than non-mothers overall. Women in managerial and professional occupaons experience the largest earnings penalty for early motherhood, and also the largest earnings premium for older motherhood. Ferlity delay is not an eecve strategy for increased earnings in most other occupaons. There is no premium for older motherhood in most non-managerial and professional occupaons. These occupaons are less likely to require advanced degrees or oer career ladders so ferlity delay would not necessarily result in more extensive educaonal preparaon or career progress. References Amuedo-Dorantes, C. and J. Kimmel. 2004. “The Motherhood Wage Gap for Women in the United States: The Importance of College and Ferlity Delay.” Economic Working Papers at Centro deEstudios Andaluces E2004/07. Anderson, D., M. Binder, and K. Krause. 2003. “The Motherhood Wage Penalty Revisited: Experience, Heterogeneity, Work Eort, and Work Schedule Flexibility.” Industrial and Labor Relaons Review 56(2): 273-294. Blair-Loy, M. 2003. Compeng Devoons: Career and Family among Women Execuves. Cambridge, MA: Harvard University Press. Budig, M. J. and P. England. 2001. “The Wage Penalty for Motherhood.”American Sociological Review 66(2): 204-225. Epstein, C. F., C. Seron, B. Oglensky, and R. Sauté. 1999. The Part-Time Paradox: Time Norms, Professional Life, Family, and Gender. New York, NY: Routledge. Landivar, L. C. 2014. “Opng Out, Scaling Back, or Business-as-Usual? An Occupaonal Assessment of Women’s Employment.” Sociological Forum 29(1): 189-214. Livingston, G. and D. Cohn. 2010. “The New Demography of American Motherhood.” Pew Research Center: A Social & Demographics Trends Report. Mathews, T. J. and B. E. Hamilton. 2014. “First Births to Older Women Connue to Rise.” NCHS data brief No. 152. Hyasville, MD: Naonal Center for Health Stascs. Stone, P. 2007. Opng Out? Why Women Really Quit Careers and Head Home. Berkeley, CA: University of California Press. Waldfogel, J. 1998. “Understanding the ‘Family Gap’ in Pay for Women with Children.” The Journal of Economic Perspecves 12: 1: 137-156. For informaon on condenality protecon, sampling error, nonsampling error, and denions, see: hps://www.census.gov/acs/www/Downloads/data_documentaon/Accuracy/ ACS_Accuracy_of_Data_2013.pdf. Background Ferlity delay has been linked to women’s increased educaonal aainment, labor force parcipaon, and connuity of employment (Livingston and Cohn 2010). More women today are college graduates postponing childbearing, giving them more me to establish a career and accumulate resources. Between 1970 and 2013, women’s mean age at rst birth increased from 21.4 to 26 years old. Not only has the age at rst birth increased, a larger share of births has shied to women over age 34 (Mathews and Hamilton 2014). The Representaon of Mothers and Non-Mothers Across Legal Occupaons Figure 2. Women working during rst pregnancy and following birth, 1961-1965 and 2005-2007 Months before birth Birth Months aer birth Working during pregnancy Working aer pregnancy Sources: 1961-1965: U.S. Census Bureau, Current Populaon Reports, Series P23-165 (Work and Family Paerns of American Women), Table B-5; 2005- 2007: Survey of Income and Program Parcipaon, 2008 Panel, Wave 2. Percent 0 9 9 10 11 12 8 8 7 7 6 6 5 5 4 4 3 3 2 1 1 2 20 40 60 2005-2007 1961-1965 Figure 3. Women’s employment by age and presence of children, 2013 Source: 2013 American Community Survey 0 10 20 30 40 50 60 70 80 School-age children Preschool children No children Percent Part me Not in labor force Unemployed Employed Do women with children also earn less than women without children? Research Quesons Figure 5. Median earnings by age of mother and age and presence of children, 2013 29,996 26,068 22,150 Ages 18-29 41,194 42,610 34,458 Ages 30-39 40,500 50,320 42,461 Ages 40-50 Source: 2013 American Community Survey School-age children Preschool children No children Figure 6. Earnings penalty or premium by occupaon and presence of children, 2013 Source: 2013 American Community Survey Earnings penalty No children Earnings premium Managerial and professional occupaons Total Management Business and financial Computer Engineering Science Social service Legal Educaon Arts and media Healthcare praconers Healthcare support Protecve service Food preparaon Cleaning and maintenance Personal service Sales Office Agriculture Construcon Producon and transportaon Total Management Business and financial Computer Engineering Science Social service Legal Educaon Arts and media Healthcare praconers Healthcare support Protecve service Food preparaon Cleaning and maintenance Personal service Sales Office Agriculture Construcon Producon and transportaon -25k -15k -5k 5k 15k 25k 35k 45k Women with preschool children Women with school-age children Earnings penalty No children Earnings premium -25k -15k -5k 5k 15k 25k 35k 45k Ages 18-29 with a preschooler Ages 30-39 with a preschooler Ages 40-50 with a preschooler Source: 2013 American Community Survey *Compared with non-mothers in the same age group. Total Management Business and financial Computer Engineering Science Social service Legal Educaon Arts and media Healthcare praconers Healthcare support Protecve service Food preparaon Cleaning and maintenance Personal service Sales Office Agriculture Construcon Producon and transportaon Earnings penalty No children Earnings premium -25k -15k -5k 5k 15k 25k 35k 45k Among women aged 40 to 50, mothers of preschoolers earn $40,000 more than non-mothers. Figure 8. Earnings penalty or premium by occupaon and age among mothers of school-age children, 2013* Ages 18-29 with a school-age child Ages 30-39 with a school-age child Ages 40-50 with a school-age child Figure 9. Percent Distribuon of Women Ages 18 to 50 in Legal Occupaons by Age and Presence of Children, 2013 No children Preschool children School-age children 41 20 14 59 80 86 60 63 28 40 37 72 39 75 47 61 25 53 Source: 2013 American Community Survey Ages 18-29 Ages 30-39 Ages 40-50 Lawyers and judges Paralegals and legal support

Transcript of Timing Is Not Everything: How Age of Children Affects Women ...U.S. Department of Commerce Economics...

Page 1: Timing Is Not Everything: How Age of Children Affects Women ...U.S. Department of Commerce Economics and Statistics Administration U.S. CENSUS BUREAU census.gov This poster is released

U.S. Department of CommerceEconomics and Statistics Administration U.S. CENSUS BUREAUcensus.gov

This poster is released to inform interested parties of ongoing research and to encourage discussion. Any views expressed are those of the

author and not necessarily those of the U.S. Census Bureau.

Timing Is Not Everything: How Age of Children Affects Women’s Earnings in 20 Occupation Groups Liana Christin Landivar | Social, Economic, and Housing Statistics Division, U.S. Census Bureau, Department of Commerce

Presented at the Annual Meeting of the Population Association of America

San Diego, CAApril 30-May 2, 2015

Women are also more likely to return to employment following a birth, and toreturn sooner than women in earlier generations.

Figure 1. Mean age at first birth, 1970-2013

26.0

21.420

22

24

26

28

‘132003 ‘93 ‘831973Year

Source: CDC/NCHS National Vital Statistics System, 1970–2013

Age of mother

Women with children are still more likely to remain out of the labor force and work part time compared with women without children.

Previous research indicates that mothers earn less than non-mothers. Researchers describe this earnings gap as a “wage penalty” or “family gap” associated with motherhood (Budig and England 2001; Waldfogel 1998). The wage gap is sensitive to timing of children as well as educational attainment and type of employment (Anderson, Binder, and Krause 2003; Amuedo-Dorantes and Kimmel 2004).

Fertility delay and access to more resources should enable women in professional occupations to maintain greater continuity of employment and experience a smaller wage penalty. On the other hand, women in professional occupations are described as having extensive work-family conflict because of long hours of work and intense parenting and employer demands (Stone 2007; Blair-Loy 2003). Women in these occupations who scale back their work hours or re-enter after a career break are shown to experience career penalties and a significant wage cut (Epstein et al. 1999).

Do mothers earn less than non-mothers? Is the earnings gap similar across occupations?Do all women benefit economically from fertility delay or is the benefit concentrated among women in particular occupations?

Data and SampleData: 2013 American Community Survey (ACS) Sample: Women ages 18 to 50, currently employed full-time, year-round (N= 29,240,583).

DefinitionsMothers = Women between the ages of 18 and 50 with at least one own child aged 0 to 17 living at home.

Preschool child = At least one child aged 0 to 5 living at home. Includes households that have a preschool child and a school-age child.

School-aged child = At least one child aged 6 to 17 living at home. Excludes households with preschool-age children.

Delayed fertility = Women ages 30-50 with a preschool child; women ages 40-50 with a school-age child. This measure is a conservative approximation, as women are grouped by age and may include a small number of women with early or normative fertility with children at the top of the age group. It also assumes later fertility among women with preschool and school-age children who are classified according to the age of the youngest child.

ResultsAmong full-time workers, women with children earn more than women without children.

37,598 37,22636,266

No children Preschool children School-age children

Figure 4. Median earnings of women ages 18-50 employed full-time, year-round, 2013

Source: 2013 American Community Survey

Young mothers earn less than non-mothers, but older mothers earn more than non-mothers.

• Mothers between the ages of 18 and 29 and mothers ages 30 to 39 with school-age children experience an earnings penalty relative to women without children.

• Women who are between 40 and 50 with preschool children have a large earnings premium.

The earnings gap between mothers and non-mothers varies by occupation.

Mothers in managerial and professional occupations have an earnings premium.• Larger earnings premium among mothers of preschoolers in computer,

engineering, science, and legal occupations, where mothers earn between$9,300 and $15,300 more per year.

• Mothers of school-age children earn substantially more than non-mothers in management, science, and computer occupations, ranging from $8,700to $9,400 per year.

In non-managerial and professional occupations:• Mothers of preschoolers experience an earnings penalty, except among

those working in sales or protective service occupations. • The earnings gap is smaller between non-mothers and mothers of

school-age children.• Mothers of school-age children earn less than non-mothers in agricultural,

food preparation, and production occupations.

Do mothers in managerial and professional occupations earn more than non-mothers even if they have children when they are young? Conversely, can women in service, office, construction, or production occupations experience an earnings premium by delaying fertility?

Figure 7. Earnings penalty or premium by occupation and age among mothers of preschool children, 2013*

Source: 2013 American Community Survey

*Compared with non-mothers in the same age group.

Women in most managerial and professional occupations experience an earnings premium so long as they are not young mothers. Fertility at older ages is associated with an earnings premium.

• Among mothers of preschoolers, older age is associated with an earnings premium in most management and professional occupations and protective service, office, and sales occupations.

• Mothers of preschoolers in science and education occupations experience a premium at all ages.

• Having children at older ages does not translate into an earnings premium for women in construction, production, agriculture, health care support, cleaning and maintenance, or food preparation, where mothers earn less than non-mothers or there is no statistical difference in their earnings.

Among mothers of school-age children, young age is associated with earnings penalties in most occupations relative to non-mothers. No occupation provides a premium.

• Mothers of school-age children in engineering and legal occupations, and health care practitioners have large earnings penalties among young mothers.

• Mothers in protective service and cleaning and maintenance show no statistical difference in earnings from non-mothers, even if they have their children young.

Legal occupations stand out for having among the largest premiums for delayed fertility. Part of the earnings gap is a result of women going into different jobs within these fields. This may indicate that in this field, the parenthood gap in earnings stems from unequal representation across legal occupations and is sensitive to fertility timing. Younger mothers may be on a different career track and may not easily reach earnings parity with non-mothers or late mothers.

Summary• Mothers are less likely to be employed than non-mothers, which results in

a selection effect among those who remain employed. Mothers with higher earnings prospects tend to remain in the labor force (Landivar 2014). As aresult, mothers earn more than non-mothers overall.

• Women in managerial and professional occupations experience the largest earnings penalty for early motherhood, and also the largest earnings premium for older motherhood.

• Fertility delay is not an effective strategy for increased earnings in most other occupations. There is no premium for older motherhood in most non-managerial and professional occupations. These occupations are less likely to require advanced degrees or offer career ladders so fertility delay would not necessarily result in more extensive educational preparation or career progress.

ReferencesAmuedo-Dorantes, C. and J. Kimmel. 2004. “The Motherhood Wage Gap for Women in the United States: The Importance of

College and Fertility Delay.” Economic Working Papers at Centro de Estudios Andaluces E2004/07.

Anderson, D., M. Binder, and K. Krause. 2003. “The Motherhood Wage Penalty Revisited: Experience, Heterogeneity, Work Effort, and Work Schedule Flexibility.” Industrial and Labor Relations Review 56(2): 273-294.

Blair-Loy, M. 2003. Competing Devotions: Career and Family among Women Executives. Cambridge, MA: Harvard University Press.

Budig, M. J. and P. England. 2001. “The Wage Penalty for Motherhood.” American Sociological Review 66(2): 204-225.

Epstein, C. F., C. Seron, B. Oglensky, and R. Sauté. 1999. The Part-Time Paradox: Time Norms, Professional Life, Family, and Gender. New York, NY: Routledge.

Landivar, L. C. 2014. “Opting Out, Scaling Back, or Business-as-Usual? An Occupational Assessment of Women’s Employment.” Sociological Forum 29(1): 189-214.

Livingston, G. and D. Cohn. 2010. “The New Demography of American Motherhood.” Pew Research Center: A Social &Demographics Trends Report.

Mathews, T. J. and B. E. Hamilton. 2014. “First Births to Older Women Continue to Rise.” NCHS data brief No. 152. Hyattsville, MD:National Center for Health Statistics.

Stone, P. 2007. Opting Out? Why Women Really Quit Careers and Head Home. Berkeley, CA: University of California Press.

Waldfogel, J. 1998. “Understanding the ‘Family Gap’ in Pay for Women with Children.” The Journal of Economic Perspectives 12: 1:137-156.

For information on confidentiality protection, sampling error, nonsamplingerror, and definitions, see: https://www.census.gov/acs/www/Downloads/data_documentation/Accuracy/ACS_Accuracy_of_Data_2013.pdf.

BackgroundFertility delay has been linked to women’s increased educational attainment, labor force participation, and continuity of employment (Livingston and Cohn 2010). More women today are college graduates postponing childbearing, giving them more time to establish a career and accumulate resources.

Between 1970 and 2013, women’s mean age at first birth increased from 21.4 to 26 years old. Not only has the age at first birth increased, a larger share of births has shifted to women over age 34 (Mathews and Hamilton 2014).

The Representation of Mothers and Non-Mothers Across Legal Occupations

Figure 2. Women working during first pregnancy and following birth, 1961-1965 and 2005-2007

Months before birth Birth Months after birth

Working during pregnancy Working after pregnancy

Sources: 1961-1965: U.S. Census Bureau, Current Population Reports, Series P23-165 (Work and Family Patterns of American Women), Table B-5; 2005-2007: Survey of Income and Program Participation, 2008 Panel, Wave 2.

Percent

09 9 10 11 128 87 76 65 54 43 32 1 1 2

20

40

602005-2007

1961-1965

Figure 3. Women’s employment by age and presence of children, 2013

Source: 2013 American Community Survey

0 10 20 30 40 50 60 70 80

School-age childrenPreschool childrenNo children

Percent

Part time

Not inlabor force

Unemployed

Employed

Do women with children also earn less than women without children?

Research Questions

Figure 5. Median earnings by age of mother and age and presence of children, 2013

29,996 26,068 22,150

Ages 18-29

41,194 42,61034,458

Ages 30-39

40,50050,320

42,461

Ages 40-50

Source: 2013 American Community Survey

School-age childrenPreschool childrenNo children

Figure 6. Earnings penalty or premium by occupation and presence of children, 2013

Source: 2013 American Community Survey

Earnings penaltyNo

children Earnings premium

Managerial and professional occupations

TotalManagement

Business and financialComputer

EngineeringScience

Social serviceLegal

EducationArts and media

Healthcare practitionersHealthcare support

Protective serviceFood preparation

Cleaning and maintenancePersonal service

SalesOffice

AgricultureConstruction

Production and transportation

Total

Management

Business and financial

Computer

Engineering

Science

Social service

Legal

Education

Arts and media

Healthcare practitioners

Healthcare support

Protective service

Food preparation

Cleaning and maintenance

Personal service

Sales

Office

Agriculture

Construction

Production and transportation

-25k -15k -5k 5k 15k 25k 35k 45k

Women with preschool children Women with school-age children

Earnings penaltyNo

children Earnings premium

-25k -15k -5k 5k 15k 25k 35k 45k

Ages 18-29 with a preschooler Ages 30-39 with a preschooler Ages 40-50 with a preschooler

Source: 2013 American Community Survey

*Compared with non-mothers in the same age group.

Total

Management

Business and financial

Computer

Engineering

Science

Social service

Legal

Education

Arts and media

Healthcare practitioners

Healthcare support

Protective service

Food preparation

Cleaning and maintenance

Personal service

Sales

Office

Agriculture

Construction

Production and transportation

Earnings penaltyNo

children Earnings premium

-25k -15k -5k 5k 15k 25k 35k 45k

Among women aged 40 to 50, mothers of preschoolers earn $40,000 more than non-mothers.

Figure 8. Earnings penalty or premium by occupation and age among mothers of school-age children, 2013*

Ages 18-29 with a school-age child Ages 30-39 with a school-age child Ages 40-50 with a school-age child

Figure 9. Percent Distribution of Women Ages 18 to 50 in Legal Occupations by Age and Presence of Children, 2013

No children

Preschool children

School-age children

41

20

14

59

80

86

60

63

28

40

37

72

39

75

47

61

25

53

Source: 2013 American Community Survey

Ages 18-29 Ages 30-39 Ages 40-50

Lawyers and judges Paralegals and legal support