The Motherhood Wage Penalty

The comprehensive theoretical and empirical review of the gender wage gap identifies several underlying factors contributing to this issue. Wage disparities between men and women are influenced by horizontal and vertical job segregation, lower accumulation of human capital among women, and direct discrimination in the labor market. These inequalities are closely tied to women's substantial involvement in the care economy, which includes unpaid responsibilities such as childcare, caregiving for dependents, and household management, as noted by ^{Kalabikhina et al. (2024)} .

A critical factor that amplifies the effects of the wage gap is the income penalty associated with motherhood. The disparities in wages and employment between men and women are often rooted in a single biological factor—the potential for motherhood.

Examining this issue from an economic perspective is essential, as it directly influences the autonomy of women who become mothers while remaining active in the labor market. It is paradoxical that an economic system penalizes motherhood, a fundamental biological condition vital to human reproduction.

^{Cukrowska-Torzewska and Matysiak (2020)} assert that the motherhood wage gap arises from various factors, including skill loss during career breaks, job choices prioritizing work-life balance, reduced effort, discrimination, and the influence of social policies and norms that affect how mothers juggle work and childcare responsibilities. In this framework, the orthodox perspective often attributes this penalty to human capital theory, framing it as a consequence of women’s choices ^{(Becker, 1985)} .

Furthermore, the relationship between motherhood and women’s income is directly linked to unpaid domestic work. Multiple studies have examined this connection in the context of Mexico. For instance, ^{Llanes and Pacheco (2021)} investigated the dynamics of domestic and caregiving responsibilities amidst the adverse working conditions faced by women during the COVID-19 pandemic.

Various empirical analyses have been conducted, addressing motherhood and factors related to women's reproductive rights in relation to the labor market through lenses such as education, regional differences, social context, and the timing of the first child ^{(Aguilar-Gomez et al., 2019; Rentería and Tinoco, 2019}; ^{Bravo et al., 2017}; ^{Vázquez et al., 2012}; ^{Mendizábal, 2006}; ^{De Oliveira and García, 1990}).

Exploring this scenario is valuable for recognizing the intersection between economic development opportunities for women and the barriers they face in the labor market due to gender-specific characteristics. Motherhood emerges as a key determinant of women's access to and retention in the labor market, both as employees and employers.

Gender-Based Violence

The physical violence that women experience is a critical factor in analyzing gender inequality. This issue becomes even more pressing when considering the broader context of women's autonomy in Mexico. Research on the connection between the workplace and gender-based violence can be categorized into two primary classifications, following the criteria set by ^{Velázquez and Díaz (2020)} .

Firstly, findings on sexual harassment in the workplace are particularly notable in the Mexican context. According to ^{Torres et al. (2023)} , psychological and verbal gender-based violence adversely affects female workers’ performance and increases their intent to quit. Numerous studies document instances of sexual harassment across various occupations in Mexico, highlighting the pervasive nature of this issue (^{Fiorini et al., 2022}; ^{Pérez et al., 2019}; ^{Elizalde, 2017}; ^{Maldonado and Carballo, 2016}; ^{Tena et al., 2015)}.

Secondly, violence manifests through acts of discrimination and labor inequality, which include inadequate economic compensation, restricted access to healthcare services, and limited participation in social support programs. While addressing workplace conditions is vital, it is equally important to recognize that the type of violence we seek to analyze in this research extends beyond the workplace, encompassing the personal realm as well.

The literature on feminist criminology consistently highlights that structural gender inequality is a significant contributor to violence against women, particularly in extreme forms like feminicide, as noted by ^{Gu and Zhong (2024)} . The amelioration hypothesis posits that greater gender inequality restricts women's empowerment and fosters an environment conducive to violence ^{(Levinson, 1988)} . Conversely, while increased social status and autonomy can offer protection, attempts to reduce gender inequality may be perceived as a threat to male authority, potentially provoking backlash or retaliatory violence ^{(Russell, 1975)} .

Despite these insights, critics argue that existing perspectives fail to fully address the complex causes of feminicide. In response, ^{Gu and Zhong (2024)} propose a dynamic interaction between the forces of amelioration and backlash, which fluctuate based on the level of gender equality. In this context, the current research aims to investigate these dynamics at the state level, focusing specifically on how they manifest through women's economic autonomy and the labor conditions they encounter.

In summary, this study argues that in Mexico, gender inequality —expressed through income penalties linked to motherhood and persistent forms of violence— undermines women’s economic and physical autonomy. These dynamics restrict women’s access to opportunities and economic independence, both essential for empowerment and the elimination of violence. Addressing these interrelated factors is key to designing policies that effectively promote women’s autonomy and safety across different regions of the country.

Income and Motherhood in Mexico

For the first model, four regressions are estimated that disaggregate the percentage of women based on their income level according to the number of minimum wages (up to one minimum wage, from one to two minimum wages, from two to three minimum wages, from three to five minimum wages, and more than five minimum wages), according to the number of children (no children, one to two children, three to five children, and more than six children).³

In general terms, we aim to explore the relationship between economic activity (E A), a set of gender-based labor income gaps (Br), domestic work as a key dimension in gender-based economic analysis (TD), and motherhood, measured by the number of children (M):

EA = f (Br, TD, M) (1)

To closely examine the proposed analysis, Figure 1 presents the percentage structure of employed women's income according to the number of children. The trend is clear. The percentage of women with at least one child increases from 36.38 percent without children, progressively reaching 64.73 percent with six or more children. Conversely, the share of women earining more than five minimum wages declines sharply, fro 1.09 percent among women without children to just 0.16 percent among those with six or more children.

The wage precarization experienced by women due to motherhood in Mexico can be disaggregated at the state level, as shown in Figure 2 at the end of the document. The income gap for the population earning up to one minimum wage, that is, those with the lowest incomes, is a widespread phenomenon.

A complementary and inverse pattern is observed among high income female workers — those earning more than five minimum wages — across the 32 federal entities, as shown in Figure 3 at the end of the document. In every case, men, represent a higher proportion of the employed male population earning more than five minimum wages than women do among the employed female population.

This global perspective is complemented by an analysis of income distribution between men and women from 2005 to 2023, as illustrated in Figures 4 and 5 at the end of the document. The dotted lines represent the 10th, 50th, and 90th percentiles for comparison. Data shows a decrease in the percentage of employed individuals earning more than five minimum wages, with a pronounced decrease on the female population (0.86 percent) compared to men (1.53 percent) in 2023. In general, distributional trends between men and women reveals that a larger proportion of women (42.5 percent) are employed earning up to one minimum wage, compared to men (28.4 percent) at the end of the period.

However, the repercussions of the COVID-19 pandemic on the labor market, observed since 2020, have had a significantly greater impact on women. The overall data allow for the estimation of a short-balanced panel model that includes the 32 states as individual units over the period 2005-2023.

To avoid multicollinearity issues, four separate regressions are estimated, each incorporating the set of independent variables related to women’s number of children. For instance, among women earning up to one minimum wage, the proportions of women without children, with one or two children, with three to five , and with six or more children are disaggregated. The same approach is applied to women earning two to three, three to five, and more than five minimum wages with each regression including the subset corresponding to each number of children category.

Equation 2 presents the model. The dependent variable is the annual average of the Quarterly State Economic Activity Index (ITAEE). The independent variables are grouped into three categories. Using data from the National Occupation and Employment Survey (ENOE), the model includes the percentage of underemployed women (UnW) and domestic workers (DomWork). It also estimates the gender gap for individuals earning up to one minimum wage (GapOneMW) and for those earning more than five minimum wages (GapFiveMW). Lastly, the model incorporates variables capturing income levels in relation to the number of children (Inc x Child).

Table 1, available at the end of the document, presents the results of equation (2)⁴. First, the percentage of underemployed women shows the expected negative relationship, indicating that a higher share of underemployed women adversely affects state economic activity. Conversely, among women with six or more children, the share of domestic workers exhibits a significant positive association with economic activity, highlighting the sector’s relevance to the economy.

Furthermore, while the reduction in the low-income gap (up to one minimum wage) shows a negative relationship, we observe that, for women with more than six children, the high-income gap (more than five minimum wages) is positive. This suggests that the most detrimental effect on women's labor conditions occurs among those with a high number of children.

The model analyzes income levels in relation to the number of children included in each regression. The results indicate that women without children are positively association with higher income levels, whereas working mothers with three to five children experience lower incomes.

Moreover, the relationship between having no children and earning low wages (one to two minimum wages) differs from that of women with one or two children in the same income range: it is negative in the first case and positive in the second. This change in sign underscores the significant effect that having at least one child has on women’s income levels.

Furthermore, a similar pattern is observed amonghigh-income earners (those earning more than five minimum wages). The relationship between high income and having no children is positive, whereasfor women with three to five children, it becomes negative. This contrast further highlights the income penalty associated with motherhood, as the positive relationship with high earnings is significant for childless women but negative and significant for mothers with three or more children.

Extreme Gender-Based Violence

For the second model, the dependent variable is the number of femicides at the state level (Fem) obtained for the Executive Secretariat of the National Public Security System (SESNSP). This study period is limited to 2015 to 2023 due to the absence of earlier data on the formal classification of this crime.⁵

Thus, a short-balanced panel data model with 9 periods and 32 federal entities is constructed. The independent variables are income levels, measured by the number of minimum wages earned (IncLev). Additionally, the gender gaps between the number of employed women (x _F ) and the number of employed men (x _M ) are estimated:

Additionally, the underemployment gap according to the educational level (GapUnd) is included, followed by the unemployment gap based on its duration (GapUn). In general, the following relationship is obtained:

In this sense, Figure 6, presented at the end of the document, provide context for the importance of considering the educational level in the composition of the underemployed population. Since 2005, the increase in the highly educated total underemployed population has been persistent, with the gender gap widening from 2020 onwards. Throughout the entire period, the percentage of women exceeds that reported by men.

From a state-level perspective in 2023, as shown in Figure 7 at the end of the document, only in Jalisco and the State of Mexico is the percentage of men slightly higher than that of women. However, a generalized trend is observed across the country, with women representing a higher percentage in these conditions.

In this regard, to capture the relationship in equation (4), the gap in the employed population (GapEmp) is first calculated, followed by the gender gap by income level (GapInc) according to the minimum wages earned (from one to two, from two to three, more than five, and not specified). The percentage of women employed in the informal sector (Inf) as a percentage of the employed population is also considered. For the underemployment gap (GapUnd), the criterion of educational level (higher education, incomplete primary education, and completed secondary education) is integrated. Finally, the unemployment gap (GapUn) is presented according to its duration (up to one month, from one to three months, and from three to six months).

Table 2 presents the results, showing a negative relationship between gender gaps and high income levels. The reduction in the gap between women and men earning more than five minimum wages to one or two minimum wages is related to an increase in femicides. Only the gap between two and three minimum wages shows a positive relationship. In general, the results indicate a negative reaction towardwomen who tend to earn high incomes.

The importance of the disaggregated study of the phenomenon is observed through the positive and significant relationship with the gap in the employed population, as it is true that greater labor market insertion of women reduces violence levels. However, the internal conditions and dynamics related to gender roles impact the precariousness they face in the labor market.

This precarization is reflected in the positive relationship with the percentage of women's participation in the informal sector. Conversely, the reduction in the overall gap in underemployment is negative. However, when disaggregated by educational level, a positive relationship emerges, particularly among women with higher education.

This can be explained by the fact that in contexts where social norms permit gender-based violence to sustain male control, highly educated women who challenge these norms may become targets of violence. This violence serves to reinforce patriarchy and deter such women from setting examples. Thus, the positive relationship between the gender gap in underemployment among highly educated women and feminicides indicates violent resistance to social change and male dominance, aiming to preserve traditional gender hierarchies.

Finally, the findings show a negative relationship between the unemployment gap and the duration of unemployment, indicating that the reintegration of women into the labor market under precarious conditions contributes to the reduction of feminicides. These results highlight that the mere inclusion of women in the labor sphere is not enough.

It is imperative to address the social structure that precarizes employment and perpetuates gender inequalities. To achieve an effective reduction in femicides, it is necessary to profoundly transform labor conditions and promote true equality in the work environment.

Motherhood and Gender-Based Violence: The Challenges of Women's Entrepreneurship

The previous section examined how structural conditions that intensify gender-based violence intersect with women’s labor opportunities, constraining their physical and economic autonomy. Labor conditions are shaped by entrenched patriarchal norms that permeate all aspects of life, forcing women to balance professional duties with domestic and caregiving responsibilities, which restricts their time for career advancement and entrepreneurship ^{(Acevedo and Sampieri, 2021)} . Furthermore, motherhood in contexts marked by machismo and violence deepens these constraints, further diminishing women’s income levels.

Empirical evidence for Mexico suggests that motherhood is associated with wage penalties arising from employer discrimination, which in turn motivates women to pursue entrepreneurship to offset these labor market disadvantages ^{(Yang et al., 2023)} . This aligns with the model results discussed earlier, where low incomes (from one to two minimum wages) are linked to the presence of children. While not having children is negatively related to economic activity, having children can reverse this relationship, worsening women's income and restricting their professional development.

The expanded framework on women's entrepreneurship, proposed by ^{De Bruin et al. (2007)} , includes key factors such as markets, money, management, motherhood, and the meso/macro environment. It highlights how family responsibilities, particularly motherhood, influence women entrepreneurs' business decisions, emphasizing the need to consider multiple levels of influence in public policy discussions.

Promoting women's entrepreneurship requires addressing the balance between family and work. ^{Cavada et al. (2017)} emphasize that women are often attracted to entrepreneurship due to the flexibility it provides for managing both spheres. Family support is essential for women entrepreneurs' success in Mexico, as ^{Acevedo and Sampieri (2021)} emphasize the importance of balancing economic goals with fostering quality relationships.

Additionally, ^{Leung (2011)} notes that women often leverage their gender and maternal roles to strengthen their ventures. However, coercive control by men can negatively affect women's labor participation, linking this to the findings on extreme gender-based violence from the previous section.

The negative relationship between the reduction of the gap in the underemployed population with high educational levels, as well as the gap in the employed population with high incomes (more than five minimum wages), is linked to multiple hypotheses related to a negative male reaction to the need for control and superiority characteristic of a patriarchal order. These findings are consistent with the study by ^{Liu and Fullerton (2015)} for Mexico at the state level, which explores the presence of the so-called hypothesis of male backlash against women.

Thus, women in controlling relationships face lower labor market participation, greater susceptibility to violence, and income restrictions. While employment can reduce violence risk by providing economic independence ^{(Villarreal, 2007)} , persistent gender inequality and violence hinder women's entrepreneurship. Cultural norms tolerating male power and violence further limit opportunities for women to start and sustain businesses ^{(Acharya, 2011)} .

According to ^{INEGI (2023a)}, women in Mexico face multiple forms of violence, most commonly emotional, followed by physical, sexual, and economic. Partners are frequently identified as the main perpetrators, leading to serious physical, psychological, economic, and social consequences. Despite its high prevalence, the report indicates that women often refrain from reporting incidents due to fear of reprisals, distrust in authorities, and the normalization of violence. This underscores that, despite the existing legal framework for women’s protection, violence remains a pervasive issue in Mexico.

Therefore, awareness programs in all areas, as well as reducing levels of impunity, are crucial to creating a violence-free context for women where the necessary institutions for developing businesses that exceed survival rates and integrate into high value-added sectors can be built.

The evidence for Mexico demonstrates that strengthening women's physical and economic autonomy requires addressing the broader social context. Patriarchal logic, ingrained in the family, fuels gender-based violence that limits women's rights and freedoms, affecting both domestic and public spheres.

Labor market gender roles penalize motherhood, hindering women's professional development and deepening wage disparities. Rather than being seen as a natural life aspect, motherhood is viewed as an obstacle to career growth.

In this context, promoting women's entrepreneurship is a viable strategy to overcome labor market challenges, offering income generation, economic independence, and work-family balance. Public policies must address and combat gender inequalities in all areas.