Increasing Inequality in British and U.S. Fatherhood Premia across the Earnings Distribution, 1974-2010

Lynn Prince Cooke, University of Bath

Parenthood creates a well-documented gendered economic divide, but less is known about its stratifying effects among men. Five waves of LIS data and regressions of the recentered influence function reveal changes since the 1970s in the impact of children at different percentiles of partnered British and U.S. men’s earnings distributions. In the 1970s, all partnered British and U.S. fathers enjoyed some earnings premium, with the relative premia largest among the lowest-earning men. Premia at the median of men’s earnings have not changed significantly over time, but the polarization of labor markets is evident in a cross-over of effects at other percentiles. By 2010, the lowest-earning fathers with three or more children incurred significant earnings penalties, with penalties greatest in the United Kingdom. In addition, the relative fatherhood premia for the highest-earning U.S. men increased significantly. We argue these patterns suggest the profound structural changes in the labor market have altered fathers’ relative bargaining power.