To have or not to have: the effect children have on a woman's income

Abstract

This research attempted to evaluate the pay-gap between women with children and women without children. Previous literature consistently concludes women with children will have lower incomes than women without children. The income determination model is composed of individual, structural, and gender segments and is used to examine the pay-gap between these two groups. The 2004 American Time Use Survey dataset is used to analyze the hypothesis that women with children will have a lower income than women without children. Results in this research contradict previous research. OLS Regression revealed women with children have a higher income than women without children. However, further analysis showed women without children have higher economic return for their age and occupational prestige than do women with children. The structural segment in the income determination model explained the disparity more than the other two segments. Policy implications are discussed.