Hostname: page-component-cd9895bd7-dzt6s Total loading time: 0 Render date: 2024-12-18T05:29:48.728Z Has data issue: false hasContentIssue false

Employment Trajectories and Later Employment Outcomes for Mothers in the British Household Panel Survey: An Analysis by Skill Level

Published online by Cambridge University Press:  18 October 2013

KITTY STEWART*
Affiliation:
Department of Social Policy, London School of Economics and Political Science, Houghton Street, LondonWC2A 2AE email: [email protected]

Abstract

This article explores the association between mothers’ involvement in paid employment when their children are young and their later employment prospects. Using 17 waves of the British Household Panel Survey (1997–2007), it examines the employment trajectories of 954 women for the decade after the birth of their youngest child, asking two main questions. Do mothers who enter or return to work tend to remain in employment? And do wages and job satisfaction further down the line (when the youngest child reaches ten years old) reflect the pathway taken? The article focuses in particular on differences between women with higher- and lower-level qualifications. Mothers are found to be following a variety of employment pathways, with instability relatively common: more than one in three move in and out of work over the period, and this movement is just as common among mothers with higher levels of qualifications as among those with only GCSE-level qualifications or none at all. A stable – and longer – work history is associated with increased wages later on, but the benefits are greater for women with higher levels of qualifications, as might be predicted by human capital theory. Women who were more highly qualified and who moved in and out of work over the decade had an hourly wage when their youngest child was ten which was 31 per cent lower than similar women with a stable work history; for women with few or no qualifications the corresponding figure was 10 per cent and statistically insignificant. For both groups, job satisfaction at the end of the decade was unrelated to the pathway taken.

Type
Articles
Copyright
Copyright © Cambridge University Press 2013 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Anderson, D. J., Binder, M. and Krause, K. (2003), ‘The motherhood wage penalty revisited: experience, heterogeneity, work effort and work-schedule flexibility’, Industrial and Labor Relations Review, 56: 2, 273–94.CrossRefGoogle Scholar
Bastagli, F. and Stewart, K. (2011), ‘Pathways and penalties: mothers’ employment trajectories and wage growth in the Families and Children Study’, CASE paper 157, Centre for Analysis of Social Exclusion, London School of Economics and Political Science, London.Google Scholar
Berthoud, R. (2007), Work-Rich and Work-Poor: Three Decades of Change, Bristol: The Policy Press.Google Scholar
Blair, T. (1999), ‘Beveridge revisited: a welfare state for the 21st century’, in Walker, R. (eds.), Ending Child Poverty: Popular Welfare for the 21st Century, Bristol: The Policy Press.Google Scholar
Bradshaw, J. and Finch, N. (2002), A Comparison of Child Benefit Packages in 22 Countries, DWP Research Report No. 174.Google Scholar
Brewer, M., Browne, J., Joyce, R. and Sibieta, L. (2010), ‘Child poverty in the UK since 1998–99: lessons from the past decade’, IFS Working Paper 10/23.Google Scholar
Budig, M. and England, P. (2001), ‘The wage penalty for motherhood’, American Sociological Review, 66: 2, 204–25.CrossRefGoogle Scholar
Card, D. and DiNardo, J. E. (2002), ‘Skill-biased technological change and rising wage inequality: some problems and puzzles’, Journal of Labor Economics, 20: 4, 733–83.CrossRefGoogle Scholar
Daly, M. (2005), ‘Changing family life in Europe: significance for state and society’, European Societies, 7: 3, 379–98.CrossRefGoogle Scholar
Duncan, S. and Edwards, R. (1999), Lone Parents, Paid Work and Gendered Moral Rationalities, Basingstoke: Palgrave Macmillan.CrossRefGoogle Scholar
Dustmann, C. and Meghir, C. (2005), ‘Wages, experience and seniority’, Review of Economic Studies, 72: 1, 77108.CrossRefGoogle Scholar
Ellwood, D., Ty Wilde, E. and Batchelder, L. (2009), The Mommy Track Divides: The Impact of Childbearing on Wages of Women of Differing Skill Levels, New York: Russell Sage Foundation.Google Scholar
Evans, M., Harkness, S. and Arigoni Ortiz, R. (2004), Lone Parents Cycling Between Benefits and Work, London: Department for Work and Pensions.Google Scholar
Gladden, T. and Taber, C. (2000), ‘Wage progression among less skilled workers’, in Card, D. E. and Blank, R. M., Finding Jobs: Work and Welfare Reform, New York: Russell Sage Foundation.Google Scholar
Hakim, C. (2000), Work-Lifestyle Choices in the 21st Century: Preference Theory, Oxford: Oxford University Press.CrossRefGoogle Scholar
Harkness, S. (2006), ‘Lone parents cycling in and out of benefits’, in Bell, K., Staying On, Stepping Up:How Can Employment Retention and Advancement Policies Be Made to Work for Lone Parents? London: One Parent Families.Google Scholar
Harkness, S. and Waldfogel, J. (2003), ‘The family gap in pay: evidence from seven industrialized countries’, Research in Labor Economics, 22: 369413.CrossRefGoogle Scholar
Heckman, J. J., Lochner, L. and Taber, C. (1998), ‘Explaining rising wage inequality: explorations with a dynamic general equilibrium model of labor earnings with heterogeneous agents’, Review of Economic Dynamics, 1: 1, 158.CrossRefGoogle Scholar
Treasury, HM (1999), Tackling Poverty and Extending Opportunity, London: HM Treasury.Google Scholar
Jacobsen, J. and Levin, L. (1995), ‘The effects of intermittent labor force attachment on women's earnings’, Monthly Labor Review, 118: 1419.Google Scholar
Joshi, H., Paci, P. and Waldfogel, J. (1998), ‘The wages of motherhood: better or worse?’, Cambridge Journal of Economics, 23: 5, 543–64.CrossRefGoogle Scholar
Kennedy, S. (2010), ‘Lone parents with younger children: the Progression to Work pathfinders’, House of Commons Library, Standard Note SN/SP/5534ER.Google Scholar
Lewis, J. (2008), ‘Work–family balance policies: issues and development in the UK 1997–2005 in comparative perspective’, in Scott, J., Dex, S. and Joshi, H., Women and Employment: Changing Lives and New Challenges, Cheltenham: Edward Elgar.Google Scholar
Lewis, J. (2009), Work–Family Balance, Gender and Policy, Cheltenham: Edward Elgar.CrossRefGoogle Scholar
McKnight, A. (2000), Trends in Earnings Inequality and Earnings Mobility 1977–1997, Warwick: Institute for Employment Research.Google Scholar
Millar, J. (2008), ‘Work is good for you: lone mothers, children, work and well-being’, Third Annual KELA lecture, The Social Insurance Institution, Helsinki.Google Scholar
OECD (2002), Employment Outlook 2002, Paris: OECD.Google Scholar
OECD (2007), Babies and Bosses: Reconciling Work and Family Life, Paris: OECD.Google Scholar
OECD (2011), Doing Better for Families, Paris: OECD.Google Scholar
OECD (2012), OECD Family Database, Paris: OECD.Google Scholar
Sigle-Rushton, W. and Waldfogel, J. (2007), ‘Motherhood and women's earnings in Anglo-American, Continental European and Nordic countries’, Feminist Economics 13: 2, 5591.CrossRefGoogle Scholar
Stewart, K. (2009), ‘Employment and wage trajectories for mothers entering low-skilled work: evidence from the British Lone Parent Cohort’, Social Policy and Administration, 43: 5, 483507.Google Scholar
Stewart, M. B. and Swaffield, J. (1998), ‘The earnings mobility of low-paid workers in Britain’, in Asplund, R., Sloane, P. J. and Theodossiou, I., Low Pay and Earnings Mobility in Europe, Cheltenham: Edward Elgar.Google Scholar
Stewart, M. B. and Swaffield, J. (1999), ‘Low pay dynamics and transition probabilities’, Economica, 66: 261, 2342.CrossRefGoogle Scholar
Todd, E. L. (2001), Educational Attainment and Family Gaps in Women's Wages: Evidence from Five Industrialized Countries, Luxembourg: Luxembourg Income Study.Google Scholar
Waldfogel, J. (1995), ‘The price of motherhood: family status and women's pay in a young British cohort’, Oxford Economic Papers, 47: 4, 584610.CrossRefGoogle Scholar
Waldfogel, J. (1997), ‘The effect of children on women's wages’, American Sociological Review, 62: 2, 209–17.CrossRefGoogle Scholar
Waldfogel, J. (1998), ‘The family gap for young women in the United States and Britain: can maternity leave make a difference’, Journal of Labor Economics, 16: 3, 505–39.Google Scholar
Waldfogel, J. (2010), Britain's War on Poverty, New York: Russell Sage Foundation.Google Scholar