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ABSTRACT Objective The purpose of this study is to analyze theoretically and test empirically the impact and mechanisms of digital economy development on motherhood penalty. Background The digital economy is profoundly transforming how we work and live. Studies have explored its impact on the gender wage gap, but no consensus has been reached. This suggests that the digital economy may also affect the wage level of mothers and nonmothers, thereby affecting the motherhood penalty. Method This study integrates the motherhood penalty theories within a unified framework of conservation of resources theory to perform theoretical analysis. The empirical strategies include fixed effect model, instrumental variable method, Heckman method and mediation effect model to identify the impact and mechanisms. Results The coefficients of the interaction terms are 0.542 (fixed effects, p < .01), 1.922 (instrumental variable, p < .01), 0.301 (Heckman maximum likelihood estimation, p < .05) and 0.406 (Heckman two‐step, p < .05), respectively. The coefficients of low skill (beta = 0.598, p < .05), high skill (beta = 0.733, p < .1), urban (0.462, p < .1), 10 quantiles (2.845, p < .01), and 25 quantiles (1.509, p < .01) are significant. In the sample of mothers, the coefficient of housework time and flexible employment pass the test of mediation effect. Conclusion The development of the digital economy alleviates the motherhood penalty. The impact exhibits heterogeneity across urban and rural areas and income levels, but no significant skill‐based heterogeneity is observed. Finally, housework time and flexible employment are the mechanisms. Implications This study proposes to develop the digital economy in rural areas and promote flexible employment to alleviate the motherhood penalty.
Shoulin Fang (Thu,) studied this question.