INVESTIGATING THE MOTHERHOOD WAGE GAP: EVIDENCE FROM JAPAN.

Abstract

In this paper, we use the Japanese Panel Survey of Consumers to measure and explain the motherhood wage gap in Japan. Using propensity score matching with weighted least squares, we find that controlling for human capital, job characteristics and clashes between domestic and work schedules help explain 70.5% of the wage gap, leaving an unexplained wage gap of 3.18%. Unlike other studies, we find that controlling for work effort (using housework and childcare hours) does not help to explain the wage gap. Accounting for multigenerational living with parents or in-laws does not help to further explain the wage gap either, although living with in-laws decreases wages whilst living with parents has no wage effect. Subgroup analysis reveals that most of the unexplained wage gap is driven by women working in the clerical & service sector. We also find positive wage effects from mothers’ usage of maternity and/or childcare leave.