This paper introduces a new framework for understanding the persistence of the motherhood penalty by emphasizing the role of on-call care. Using a pseudo-panel event study based on the 2003-2022 American Time Use Survey (ATUS), we quantify how different types of parental care time contribute to post-childbirth labor market outcomes. Our results show that gender gaps in on-call care, not primary childcare, drive the long-term reduction in mothers' Paid work. In the first two years after birth, declines in paid work are largely explained by primary interactive childcare. Over time, however, on-call care becomes the dominant factor. This shift is not accounted for in existing labor market models, nor in standard policies such as parental leave and childcare subsidies. We argue that the persistent economic costs of gender inequality can be better understood and addressed by integrating the temporal and unpredictable nature of caregiving into economic theory and policy design.

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19 September 2025     Paper Number CEPDP2126

Download PDF - A new model of parental time investments: A paradigm shift for addressing gender inequality in the labor market

This CEP discussion paper is published under the centre's Labour programme.

This publication comes under the following theme: Labour market inequalities: Causes and cures, Gender in the labour market