Motherhood or marriage penalty? A comparative perspective on employment and wage in East Asia and Western countries

Abstract Objective This study examined cross‐national variations in marriage and motherhood penalties between Western and East Asian countries. Background Little is known about how and to what extent motherhood affects women's labor market outcomes in East Asia compared to Western welfare countries. We examine employment, wage, and labor income with regard to the motherhood penalty. Method We selected the five countries of Finland, Germany, South Korea, Taiwan, and the United States and applied probit and Heckman selection models using Luxembourg Income Study (LIS) Wave IX and Korean Labor and Income Panel Survey data. Results Variations between Western countries and East Asian welfare states are highlighted. Married mothers with children in East Asian countries are greatly disadvantaged in employment compared to those in Western countries. Having a child is associated with lower labor income and wages by 2.9% to 4.5% across the countries, but we do not find a significant association in Germany and Korea. Conclusion Women experience various dimensions of motherhood penalties across countries. East Asian women are more likely to face both marriage and motherhood penalties than others. Implication Marriage and motherhood in East Asian countries should be understood differently from those in Western contexts. Marriage and motherhood are life events that are associated with women's employment decisions and work opportunities in East Asian countries.