Becoming a mother can be exciting and fulfilling. But for many women across the U.S., adding “mom” to their resume can also have serious implications for one’s career growth, earning potential, and long-term wealth.
Dubbed “the motherhood penalty,” experts have put a label on the uphill battle women face in the workplace once they become mothers.
What is the motherhood penalty?
The motherhood penalty is the price women pay for growing their families while they’re in the workforce. Statistics show that moms in the workforce are less likely to be chosen for new roles and promotions, will earn lower salaries, and be held to a higher standard than fathers and non-mother.
According to a Harvard study, hiring managers are less likely to hire mothers than women who don't have kids. And when they do hire a woman with children, employers are likely to offer her a lower salary than those without kids. And same study reveals a flipside: fathers don’t pay the same penalty. Moms were six times less likely than non-mothers and 3.35 times less likely than childfree men to be recommended for hire. And if they did land the role, moms were more likely to be passed up for a promotion.
“While the term is based on bias, and stereotypical views of mothers, it has real impact on wages, pay equity, hiring, considerations for promotions and advancement, and inclusion in the workplace,” says Pam Cohen, PhD, Chief Research and Analytics Officer at The Mom Project, a career-resource platform for working mothers.
The motherhood penalty significantly impacts women’s earning potential—and childcare costs are a contributing factor
One of the reasons that the motherhood penalty can impact women over time is because women are more likely to take leaves of absence from work after having children or to assume caretaking responsibilities. “Parents—both moms and dads—who take career pauses are significantly more likely to report that their career advancement has been negatively impacted by parenthood, and moms are 114% more likely than dads to take a career pause,” says Cohen.
One major factor that plays a role in the high rate of moms shelving their careers: childcare expenses.
Data from the American Association of University Women (AAUW) shows that families can expect to spend anywhere from $800 to $1,230 per month, per child, on licensed childcare services. And experts say that the pandemic made things harder on moms.
“Work models are not set up to help women gain equal footing,” says Cohen. “This was clearly exacerbated with the pandemic, where we saw 1.8 million women leaving the workforce. While the notion of flexibility, work from home accelerated into acceptance, and that created a sense of more equal footing for moms, we are still seeing added challenges of lack of childcare resources, return to office mandates, and burnout for many.”
The motherhood penalty also impacts long-term wealth
The most recent data from the U.S. Census Bureau shows that in 2021, full-time, year-round working women earned 84% of what their male counterparts earned, on average. Lower salaries and lifetime earnings doesn’t just make it harder to afford childcare and more immediate expenses, it also makes it harder for moms to invest and save for the future.
According to a global Wealth Equity Index report from WTW in collaboration with the World Economic Forum, women upon retirement are expected to have only 74% of the wealth that men have—despite having longer life spans, on average.
Cohen says that the solution starts at work. "The need for support extends well beyond the limited early stages of parenthood and yet tends to drop off precipitously beyond that point in time at which mothers return from parental leave," she says.
Employers and lawmakers can step in and provide support
The motherhood penalty is not a new phenomenon, and steps have been taken to improve conditions for mothers in the workplace, but there is more work to be done.
Show greater support when transitioning back into the workforce: Recent data from the Mom Project showed that few organizations provide parental support beyond parental leave. Expanded support that covers absences from work to care for sick children and go to doctor’s appointments, access to pumping accommodations at work, and PTO for miscarriage or adoption loss can all provide added layers of support for parents who are making the transition back to work. “Access to these benefits makes a big difference economically: for instance, parents who have access to child care benefits are 26% less likely to report that parenthood has negatively impacted their compensation, and parents who have access to paid caregiver leave are a staggering 35% less likely to say parenthood has negatively impacted their compensation,” says Cohen.
Offer pay transparency: Many states have enacted pay transparency laws that require companies to list clear salary ranges on their job postings, but this isn’t a standard requirement across the board and ranges can vary drastically.
Introduce comprehensive legislation: While many companies have implemented comprehensive parental leave policies, this has not yet happened on a national scale. “While we have seen progress recently with the pay equity legislation in some states, as well as the PUMP Act to support new moms returning back to work, we have more we can do to create equitable policies and support for moms,” says Cohen. “Passing a national family leave policy is critical in supporting all moms (and parents) as well as national support for child care.”
The takeaway
The motherhood penalty can have serious short and long-term implications for moms in the workplace. While more companies have stepped in to support moms who are transitioning in and out of the workplace, experts say that real change needs to come from those in charge.
