TY  - RPRT
        AU  - Okuyama, Yoko
AU  - Murooka, Takeshi
AU  - Yamaguchi, Shintaro
        TI  - Unpacking the Child Penalty Using Personnel Data: How Promotion Practices Widen the Gender Pay Gap
        PY  - 2025/Feb/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 17673
        UR  - https://www.iza.org/index.php/publications/dp17673
        AB  - We estimate the child penalty using detailed personnel records that enable decomposition into distinct pay components. Our analysis reveals that the penalty is initially driven by reductions in time-based pay following childbirth. However, job-rank-based pay becomes increasingly significant over time, emerging as the dominant factor by the 15-year mark. These effects are interconnected: reduced working hours lead to lower performance evaluations, which subsequently limit promotion opportunities. Our theoretical model demonstrates that current promotion practices, which reward extended hours at entry-level positions, can generate production ineffciency. This finding suggests that addressing promotion practices could simultaneously reduce gender inequality and improve talent allocation, making a compelling business case for organizational reform.
        KW  - child penalty
KW  - promotion
KW  - management practice
KW  - personnel economics
KW  - internal labor markets
KW  - gender pay gap
KW  - career progression
        ER  -