Motherhood wage penalty may affect pronatalist policies

The motherhood wage penalty denotes the difference in

wages between mothers and women without children

that is not explained by differences in human capital

characteristics and labor market experience. As part of the

gender pay gap, the motherhood wage penalty can represent

a significant cost to being female and having children. If

ignored, it may undermine policy initiatives aiming to

increase fertility rates in post-socialist countries, such as

the costly “baby bonus,” which is a government payment to

new parents to assist with the costs of childrearing