Tackling the “Motherhood Penalty”

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Recently, the brilliant Harvard Professor and labor economist, Claudia Goldin, was awarded the Nobel Prize in Economic Sciences for her groundbreaking research on women in the labor market. She is just the third woman to have won the economics Nobel, and the first to be honored solo, rather than sharing in the prize. Her latest research has offered new insights into women’s historical and contemporary roles in the labor market and speaks to the reasons the gender gap remains. 

“Women are now more educated than men,” Goldin told The Associated Press, after she’d won the prize. “They graduate from college at much higher rates than men. They do better in high school than men do. So why are there these differences?” 

Good question. 

The “Motherhood Penalty” 

It’s common knowledge that women earn less than men. We make 83.7% of what men are paid, and this inequity is even greater for BlPOC women. However, there is a second earning gap that is less well-known: the gap between mothers and fathers. One of the central findings of Goldin’s research is that differences in pay and labor force participation are due not to biological differences, but an imbalance in the division of unpaid caregiving responsibilities.

Goldin has been researching this gap since the 1980s, creating  a comprehensive approach to evaluating and explaining the sources of these differences. After analyzing over 200 years of U.S. historical data, she found that women’s participation in the labor market did not have a simple upward trend over this period. Instead, it forms a U-shaped curve.

Until the second half of the 20th century, the gender wage gap could be explained by differences in education and occupational options. However, the gap didn’t close when women began working the same kinds of jobs as men;equally-educated women were still earning less. Through her research, Goldin showed that the bulk of these differences are now between men and women in the same occupation, and that the gap most often kicks in after the birth of their first child.

Goldin calls this the “motherhood penalty.” Initially, the divergence between earnings after a birth is due to a reduction in the hours, but a cascade often follows. Women are often primary caretakers for both children and aging parents, and are forced to make difficult professional decisions due to childcare needs or other factors. 81% of all caregivers, formal and informal, are women, and in heterosexual relationships where both partners work full time, women still spend a whopping 40% more time caregiving than their male partner. This imbalance often results in a loss of opportunity, a lower probability of promotion, and reduced odds of making partner or obtaining tenure. Career trajectories between mothers and fathers - and even between women with and without children - diverge. 

The “Fatherhood Premium” 

You may assume that men would take a lesser hit when they become fathers, but the opposite is true. Goldin's recent research has also found that while mothers make less than non-mothers because of the reduced number of hours they work, fathers actually make more than non-fathers over the course of their careers.

In an interview, Goldin said, “Quite frankly, it's the most disturbing part of this. Why is it that fathers are doing better, even though they have kids? Why is the fatherhood premium growing over time? The price of being a woman stays constant.” Goldin says women with children enable men with children to achieve more, saying “Men are able to step forward because women step backward.”

The rise of “greedy work” 

If the expectation of immediate responses and availability on nights and weekends sound familiar to you, you’re experiencing what Goldin calls “greedy work,” another contributor to the wage gap. Her research into this subject traces the transition from the forty-hour work week to the now sixty- to-eighty-hour work week in industries like consulting, investment banking, and tech. The rewards for this kind of 24/7 commitment can be extremely attractive, even weighed against the risks to our relationships, well-being, and personal life. The rise of greedy jobs is another contributor to pay inequity for women, as this kind of work is nearly impossible to sustain, especially if you’re the primary caretaker. 

Better workplaces for women mean better workplaces for everyone

Some of the less-enlightened may squawk about accommodations for mothers in the workplace, but the reality is that workplaces that value quality of life are better for everyone, including the bottom line. 

Years ago, the company I worked for was recently acquired by a large multinational corporation. Overnight, our division was now reporting to a business unit in another city. Huddled in a conference room around the telephone, the other two other members of the leadership team and I were informed that we’d need to travel to their new headquarters, to meet for breakfast before the 7:30 meeting on November 1. I looked at my calendar and showed the guys that this meant flying out the night before: Halloween. We each had little kids, and none of us wanted to miss the most fun night of the fall. The guys’ frowns told me they thought the date and time were a done deal, that the sacrifice came with the territory of work and leadership.

Instead, I said,  “I have a conflict the evening before, but I will take the earliest morning flight.” The three of us held our breath, waiting. 

“That will be fine, just let me know your timing. We’ll just start when you get here.”

Seeing an opportunity, they jumped in: “I’ll just fly out when Ellen does.”

“That works,” was barely uttered. 

At the time, I felt I was taking one for the team. Now, I look back and see that my male colleagues wanted what I did, but didn’t have the organizational safety to say they were prioritizing family over work. They faced a different set of risks to show they were “company men.” While it wasn’t exactly safe for me to say what I did, it was easier and safer in some ways. 

Parental leave, return-to-work plans, and flexible scheduling aren’t just “women’s issues.” Policies like these benefit all workers. Those without children still have family obligations like the rest of us, and fathers want to be a part of their children’s lives as much as mothers do. Today’s employees want a more collaborative, humanistic culture at work. When we make changes that improve the possibilities for women, we are likely making it better for everyone. Maybe the Great Resignation is less“take this job and shove it” and more “take this work and change it.” The smartest thing organizations can do is hire, develop, and reward leaders who can truly take care and take charge, merging the talents of all genders and demographics to create the leadership needs of the future. In that future and in those places, women are well-equipped to lead the way, thrive, and transform.

Join me for the How Women Lead virtual event around The Mirrored Door! I will share insights about The Mirrored Door, where it comes from, and the five perils of success that might hold you back as expectations rise.

We'll take a deep dive into societal expectations, self-doubt, and the power of courage and community. Register here for more: The Mirrored Door, Nov 8th @ 8:00 am pst 

It’s here! The Mirrored Door: Break Through the Hidden Barrier that Locks Successful Women in Place is now available. Click here to get your copy! 

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