A search interpretation of the family gap

This paper proposes a general equilibrium search model to investigate what is known as the family gap: wage differentials between mothers and non-mothers. In the human capital literature a substantial amount of the family gap is left unexplained after controlling for schooling and experience. This paper suggests that differences in labor market behavior between mothers and non-mothers are an important factor in explaining the family gap. For college graduates, estimation results show that employed mothers search 70% less than non-mothers and more than 50% of the family gap can be explained by the labor market behavior differences between mothers and non-mothers. Such differences, however, can not explain the family gap for high school graduates.

► This paper proposes a general equilibrium search model to study the family gap. ► For college graduates, employed mothers search 70% less than non-mothers. ► More than 50% of the family gap can be explained by the behavior differences.