The Long-run Impacts of Parental Leave Policies on the Motherhood Penalty: Evidence from Lower-income Mothers | WIP Seminar with Moyo Sogaolu

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Abstract: Motherhood affects the earnings of women. But does the type of maternity and parental leave available at the time of first birth matter? This paper addresses this question for lower-income mothers by using Canadian tax data for the years 2002-2019 and exploiting the 2006 introduction of Québec Parental Insurance Plan, which offered a more generous leave benefit. Using an event-study difference-in-differences approach, this paper finds no significant short-term effect on initial earnings losses. However, there is a more substantial recovery in mothers’ earnings, starting around four years after the birth of their first child, which is largely driven by stronger labour market attachment.

Moyosore Sogaolu is a Postdoctoral Fellow at the Institute for Gender and the Economy (GATE) at the Rotman School of Management, University of Toronto. She is an empirical research enthusiast passionate about using data to explore labour market issues. Her research primarily focuses on labour economics, examining the disparities experience by various groups in the labour market and the role of policies in shaping individuals' economic well-being. Her current research investigates the factors driving disparities in the economic well-being of immigrant and non-immigrant seniors.