Motherhood and the Gender Earnings Gap

During the last decades women have seen a modest progress in their quest for financial equality. Even though couples today have similar educational levels, which contribute to reducing the partner wage gap in comparison to prior decades, the disparity between men and women widens drastically around the birth of the first child and continues widening for at least the following five years. Moreover, multiple children represent a wider the gap. Why does this happen?

The reason behind this persistent disparity is the fact that regardless of certain changes in societal roles, in general, more women step back from their careers in response to childcare demands. In contrast, men usually continue to climb the professional ladder. This pattern leads to steadily growing income for men, while women put their career on hold and have temporarily non-existent wages. The effect of this pattern is an uneven playing field that never levels off, even if the mother returns to work later on.

Women, on average, still undertake full responsibility for child rearing, and that responsibility is associated with a lower extent and continuity of market work. Additionally, the double- burden influences the choice of occupation and working conditions, as women seek those that facilitate combining work and family.

Childbearing age has been found determinant for women to be able to bounce back into the professional ladder, and diminish the earnings gap, according to the Center for Economic Studies. Women who have children before the age of 25, or older than 35 have a smaller impact in their income than women who have children in their late 20s and early 30s. Research has shown that women who have children later in life have higher long-run earnings than those who have children earlier. Older mothers, tend to have more schooling and experience, and thus, may be already working in higher-paying positions, which narrows the pay gap to be bridged when they bounce back to work. Having only one child also makes it possible for women to close the spousal wage gap because the absence from the labor force is shorter.

A recent study with MBA graduates points out that while the earnings of men and women start off approximately equal, the income of female MBAs gradually drops as they have children. This is due to career discontinuity which affects their wage growth rate; less experience due to the gap years; and shorter work hours, as many opt for part-time jobs to balance work and family life.

Mother’s Day is coming up and it is a great opportunity to reflect on the many ways we can all contribute to creating a more egalitarian society. It’s a fact that there is a slow but steady transformation of the traditional division of labor in the family. Many women with children play an important role in the labor force and in global economies and men are becoming more aware of their child care duties and household responsibilities. Regarding the corporate world, there are many effective practices that can be implemented to eliminate the gender earnings gap and foster gender equality:

• Implementation of paid maternal and paternal leave can help share the responsibilities of childbirth and retain women in the workforce.
• Providing daycare and breastfeeding schedules and /infrastructure.
• Promoting remote work and Flextime which allows a better balance between professional and personal life for both partners.
• Assuring equal pay for the same responsibilities.

When corporations transform their workplace practices and culture, it has a positive effect on society in general. Women become more empowered in their family life and financial decisions. Girls become more inspired in their education and set their sights higher.

In a nutshell, we all need to shape societies where everyone can thrive on equal basis. Public and private entities need to focus on eliminating disparities in paternity and maternity rights and in implementing gender-inclusive policies. Although many corporations in the United States grant a maternity leave without payment, this still contributes to unequal earnings in the long run. Collaboration is the key to sustainable development — hand in hand, men and women can build a better world for future generations.