Gender gaps in labor informality: The motherhood effect

We estimate the short- and long-run labor market impacts of parenthood in a developing country, Chile, based on an event-study approach around birth first child. find that becoming mother implies sharp decline employment, working hours, earnings, while fathers' outcomes remain unaffected. Importantly, child also produces strong increase informality among mothers (38%). All these are milder for highly educated women. assess mechanisms behind effects model economy that: (i) informal jobs’ flexible hours prevent some women from leaving upon motherhood, (ii) improving quality social protection formal jobs tempers this informality. Our results suggest flexibility needed family-work balance, although it comes at cost deteriorating their prospects.