Does Motherhood Hinder Your Career Advancement?

Conventional wisdom often posits that motherhood adversely impacts women’s careers, leading to a phenomenon known as the “motherhood penalty.” However, new research from the IZA—Institute of Labor Economics challenges this notion by providing insights into the long-term effects of motherhood on women’s earnings. In their April 2023 paper titled “Is There Really a Child Penalty in the Long Run? New Evidence from IVF Treatments,” economists Petter Lundborg, Erik Plug, and Astrid Würtz Rasmussen assess how women’s financial trajectories unfold after having children. By analyzing data gathered over decades from over 18,500 Danish women who underwent in vitro fertilization (IVF), the authors found that although women experience a short-term dip in their earnings following childbirth, most manage to recover their economic standing within a decade and may even experience a slight increase in earnings thereafter. This suggests that the long-term implications of motherhood may not be as detrimental as previously believed.

The study’s findings reveal a nuanced perspective on the impacts of motherhood on women’s earnings. Initially, newly minted mothers do face significant financial challenges; however, the research indicates that this “motherhood penalty” diminishes over time. Lundborg and colleagues observe that successfully treated IVF women begin to see their earnings recover shortly after two years post-birth, and by ten years, their earnings align with those of women who did not have children. Remarkably, this trend continues, and by fifteen years after their first child, mothers may even experience a small lifetime earnings premium of approximately 2-3 percent. These results are particularly relevant because they suggest that, contrary to prevailing thoughts about motherhood’s effect on career advancement, having children may contribute less to the enduring gender wage gap than long assumed.

Historically, the motherhood penalty has been a significant concern in feminist discourse, with numerous studies demonstrating that women’s wages often stagnate or decline after they have children. In contrast, fathers frequently enjoy a bump in salaries post-fatherhood. A central argument in publications such as Fortune magazine asserts that this disparity represents the costs women incur while trying to balance family and career. Current statistics reveal that full-time employed mothers earn around 71 cents for every dollar their male counterparts make. However, the IZA study counters this established view, prompting a reevaluation of assumptions regarding the financial costs of motherhood in a variety of professional contexts.

The implications of the IZA research extend beyond the individual experiences of mothers. The traditional narrative around family policies continues to gain traction, often focusing on the career costs linked to childbearing as a universal truth. Thus, discussions surrounding essential measures—like subsidized childcare or parental leave policies—are frequently shaped by the belief in a persistent motherhood penalty. Nonetheless, if the long-term repercussions of motherhood are not universally negative, it could significantly transform both the conversation around women’s wages and the formulation of family-supportive policies.

Yet, it’s important to treat these findings with a degree of caution. The study, while large and robust, focuses on a specific group of women undergoing IVF, who might possess distinguishing characteristics such as higher socioeconomic status and educational attainment. By isolating a population that notably differs from the broader female workforce, the generalizability of the findings remains questionable. Despite the study’s limitations, the insights align with a growing body of research suggesting that the tenure of the motherhood penalty may be more complex—if not somewhat overstated—than earlier thought.

Supporting this perspective, researchers like Sharon Sassler have also examined the links between motherhood and earnings in various sectors, including technology. Sassler’s evidence reflects that mothers in fields such as computer science do experience a wage premium compared to their childless counterparts, yet this premium is significantly less than what fathers receive. Moreover, earlier studies have shown a reduction in the family wage gap for women across numerous occupations from 1960 to 2010. In fact, within fields like STEM, medicine, and law, a beneficial wage differential for working mothers has emerged, indicating a significant shift in how maternal roles are perceived within the labor market. Overall, the ongoing discourse surrounding motherhood, careers, and wage equality is evolving, suggesting that perhaps societal structures and perceptions regarding motherhood are also due for reassessment.