Abstract:
The term 'family gap' refers to differences in income between households with children and households without children. Previous work has used the welfare state typology proposed by Esping-Andersen to explain differences in family gaps among western nations. This paper contributes to family gap literature by analyzing the structure of the family gap in seven countries. Using quantile regression models, family gaps are decomposed into male and female hours, male and female hourly pay, transfer payments and taxes. Using Esping-Andersen's typology, mothers in Continental nations participate in the labor market far less than their counterparts in other nations. Parents in Anglophone nations receive less income from social transfer payments. However, variations within each group of nations are considerable. Policies that explain the differing structure of the family gap in the seven nations include maternal leave, social transfers and the presence of 'tax-splitting'.