04-04-2024
A new study substantiated years of data showing mothers bear most of the costs that result from having kids. Women continue to take more time out of the job market or off work because of childcare responsibilities. Some women choose careers that earn lower pay in exchange for greater workplace flexibility. The Proceedings of the National Academy of Sciences study revealed these family responsibilities contribute to the continuing gap between men's and women's pay, referred to as the “motherhood penalty.” On the other hand, men who continue to work full-time end up with a wage “bonus” when they have kids. Dads make about 20% more than men without kids.
Even in families where women earn more than men, mothers still end up with a heavier childcare load. While American marriages are becoming more egalitarian, childcare responsibilities still fall more on women. Higher-earning women experience a 60% decrease from their pre-kid earnings compared to their male partners. The continuing ability to work a hybrid schedule is helping some of these women stay in the workforce. It may reduce the “motherhood penalty” over time.
Regarding the impact of childcare, Boston Consulting Group (BCG) and Moms First released a study suggesting that employers who provide childcare for employees see a net gain. Their report reflects that for every dollar spent on childcare benefits (stipends or on-site care), employers had a net gain of $.90 and $4.25 through less absenteeism, less lateness, and lower employee attrition rates. The study included data from UPS, Etsy, Steamboat, and Fast Retailing (Uniqlo and Theory). While not dispositive on the issue, it provides positive support for these benefits.