Motherhood Penalty: A Persistent Gap in Earnings
Mothers' annual earnings were 35% lower than that of fathers in the year 2024.
Here's a fresh take on the motherhood penalty and its implications.
Key Insights
- The motherhood penalty refers to the disappointment working mothers encounter when it comes to their earnings, contrasted with their male counterparts.
- The gap stems from various factors such as disproportionate care responsibilities, discrimination in the workplace, and societal expectations.
- The penalty can impact a woman’s career growth, financial stability, and overall well-being.
Full-Time Workers Empirical Data Analysis
According to recent analysis of Census Bureau Current Population Survey (CPS) data in 2024, full-time working mothers with children under 18 earned a median salary of $56,680, while their male counterparts took home $76,388. This translates to a 35% gender pay gap, wider than the previous years (2023 and 2022).
Intriguingly, the data reveals that full-time working fathers with children under 18 make approximately 25% more than their male coworkers without kids, totaling $76,388 and $61,308, respectively, every year. It remains unclear why there is no apparent "fatherhood penalty" in the CPS data, with factors like age, experience, and education potentially at play.
Despite women’s significant progress in higher education and the workforce, their average earnings typically trail behind their male peers, with the pay gap broadening as women marry and have children. Katie Thomas, a certified public accountant who faced this dilemma after becoming a mother, eloquently stated, "I got tired of working so many hours to see my kids for maybe an hour a day."
The Career vs. Family Question
With women more likely to assume caregiving responsibilities and household work, many feel left with no choice but to either leave the workforce temporarily, accept a less-demanding job for more flexibility, or reduce hours after starting a family. Consequently, their jobs, income, and career growth suffer from these forced compromises.
Experts often refer to this situation as the "motherhood penalty." A new analysis reveals a 35% wage gap between full-time working mothers and fathers, a disparity that, if unchanged, would result in working mothers earning approximately $600,000 less than their male peers over the next 30 years.
Over time, this financial deficit can make it harder for working mothers—particularly single mothers—to achieve crucial financial milestones like building an emergency fund, saving for retirement, or purchasing a home.
The Pay Gap Across Demographics
In-depth analysis of seven categories of full-time working men and women demonstrates how women's earnings trail men’s earnings throughout various life stages, despite women's remarkable strides in education and the workforce over the past few decades.
For instance, the pay gap between mothers with under-18 children and fathers was the widest among the analyzed groups, with mothers earning just 74 cents for every dollar a father does. This translates to roughly $1,600 monthly or an annual difference of over $19,700 for mothers. In contrast, single, childless women earn 93 cents compared to their male counterparts—the smallest pay gap among the groups.
The data suggests that women start with lower earnings—but are closest to parity with men when they are single with no children. Once women get married, their pay gap widens significantly to 79 cents on the dollar. When they have children, the gap grows even further.
Single, working fathers with children also have a considerable pay gap with their female counterparts (22%). In 2024, single working mothers with children earned $45,604, while single fathers in the same category made $55,588.
Fatherhood Bonus and Stereotypes
Interestingly, the study finds no "penalty" for fathers in their earnings; if anything, fathers with children under 18 make 25% more in wages than childless men, amounting to over $400,000 in wages over 30 years. However, the reasons for this difference aren't clear in the data. Senior economist Jim Borbely suspects that this discrepancy may be related to age, as childless workers are generally younger and have lower earnings.
Researcher Yara Rodgers suggests the motherhood penalty often emerges from women taking on lower-paying, more flexible jobs or part-time work and leaving the workforce when they become parents. Unfortunately, sacrificing career development and income for family balance can come at a considerable cost.
In light of the motherhood penalty's impact on a woman's career growth and financial stability, she may find it challenging to save for health-and-wellness initiatives, such as regular medical check-ups or mindfulness retreats. Similarly, funds for a savings account dedicated to her children's education might be harder to accumulate, hindering her ability to secure their future in higher science education. As a parent, addressing the motherhood penalty becomes essential not only for her financial security but also for her children's opportunities in the future.
