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Working paper

Отцы и дети: "премия" за отцовство на российском рынке труда

The position and behavior of adult individuals in the labor market is usually linked with the presence of children. Numerous studies show that mothers suff er a wage penalty relative to wo men without children. A less studied issue is whether men’s earnings are somehow aff ected by children. In this paper, we analyze the relationship between wages and having children among Russian men, using RLMS–HSE panel micro-data of 2010–2018. In this period, fathers earned, on average, 25% more than non-fathers, suggesting a high wage premium for fatherhood in the Russian labor market. Estimating wage equations with individual fi xed eff ects we show, however, that this advan-tage vanishes after controlling for diff erences between fathers and non-fathers in socio-demo-graphic and unobserved individual characteristics. This suggests that the observed gap is caused by (self-)selection of initially more productive men in fatherhood. Estimating models that take into account the age and number of children as well as their biological relationship with men still al-lows to identify a 2.5–3% wage premium for one biological child under the age of 3 years. We show that a part of this premium may be explained by the increased gender division of labor within the household after the appearance of a child. Additionally, we fi nd Russian men receive a marriage premium of about 3%.