Children and Gender — Wage Differentials

ABSTRACT: In this paper we present a test of wage discrimination between women and men in Italy, controlling for individual productive characteristics. We emphasise the importance, in empirical tests of wage discrimination, of explicitly modelling the reproductive role of women within the family. We show that ignoring the impact on women wages of the presence of children can seriously bias the results in favour of the hypothesis of wage discrimination. Our results illustrate that a considerable wages gap exists, but that only part of the observed differential can be attributed to pure discrimination; the remainder is explained either by heterogeneous productivity of men and women or by the effect of having children on female human capital formation.