Using the simulated client technique, this study examines pregnancy discrimination in hiring processes and shows how pregnancy hinders women's employment opportunities as a combined effect of gender biases and institutional incentives that discourage the hiring of pregnant women. The analysis focuses on recruiters' responses to pregnant and nonpregnant job seekers and reveals that the rejection of pregnant applicants is still explicitly communicated in some cases, whereas in others, it is subtly implicit or veiled. Exclusion is often framed within paternalistic narratives, such as concern for maternal and fetal health. These discourses, while seemingly protective, serve to legitimize exclusion and reproduce gender inequalities. Findings contribute to feminist scholarship on reproductive labor, gendered institutions, and labor market discrimination and suggest that observed penalties may also reflect the effect of institutional arrangements that create financial and organizational incentives to avoid hiring pregnant women. The article highlights the need for public policies to address gender-exclusionary practices rooted in the gendered nature of organizations, stereotypes, and beliefs about pregnant women and the costs of employing them.
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