Does the motherhood wage penalty differ by individual skill and country family policy? A longitudinal study of ten European countries

Previous research shows considerable variation in the strength of the motherhood wage penalty across countries, which has partially been attributed to differences in policies supporting maternal employment. Although such policies are usually understood to be complementary, their effects on workers- and especially on employees in jobs of diverse skills levels-may differ. Using longitudinal data from the European Community Household Panel (ECHP) for ten countries, this article describes the associations of different maternal employment policies with the motherhood wage penalty by skill. Findings from Hausman-Taylor panel models indicate that both a high share of small children in publicly funded child care facilities and long paid maternity leave are associated with a decrease in the motherhood wage penalty regardless of skill level. The standardized total effects were larger for the latter policy.