Native-Immigrant Differences in the Effect of Children on the Gender Pay Gap

Abstract This paper explores gender differences in the career paths of immigrant and native parents before and after childbirth using Spanish administrative data and an event study specification. I find an important gender pay gap emerging after childbirth for both immigrants and natives, and that the drivers of these gender pay gaps strongly differ between natives and immigrants: while children generate higher gender gaps in labour participation and part-time work for natives, the gender gaps in employment and permanent employment are greater for immigrants. I investigate whether the deterioration of mothers’ careers originates from workers’ or employers’ decisions, and show that the main reason for native mothers is to temporarily stop working, while for immigrant mothers is being dismissed. Finally, I show that the educational background of parents is an important determinant of the native-immigrant differences I find in the effect of children on the gender pay gap, while the cultural background is not.