%0 Report
        %A Okuyama, Yoko
%A Murooka, Takeshi
%A Yamaguchi, Shintaro
        %T Unpacking the Child Penalty Using Personnel Data: How Promotion Practices Widen the Gender Pay Gap
        %D 2025
        %8 2025 Feb
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 17673
        %U https://www.iza.org/publications/dp17673
        %X 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.
        %K child penalty
%K promotion
%K management practice
%K personnel economics
%K internal labor markets
%K gender pay gap
%K career progression