How to Reduce the Child Penalty in Incomes After Women Give Birth

A new study by Emily Nix, an assistant professor of finance and business economics in the Marshall School of Business at the University of Southern California and Martin Eckhoff Andresen from Statistics Norway, finds that after giving birth women’s incomes on average drop significantly — by about 40 percent in the United States. And this so-called “child penalty” lingers for years. On average, new fathers experience no such hit to their earnings.

The researchers found that women in heterosexual couples see their pay shrink — whether due to staying home to care for the newborn, shifting to part-time work or other reasons. That drop persists for at least five years and likely longer. In same-sex couples, the birth mother’s income fell 13 percent after childbirth, along with a 5 percent drop for her partner. But within two years, the birth mother caught up with her partner. By four years after birth, the incomes of both mothers had fully recovered.

The researchers also found that subsidized high-quality child care reduces the child penalty by 25 percent. “It’s not going to totally close the gap,” Dr. Nix said, “but I would argue that 25 percent is much better than zero. It’s slow and steady, but it’s progress.”

The authors also found that paid paternity leave had no impact on the child penalty impacting women’s incomes after childbirth. “These results suggest that if policymakers wish to decrease the child penalty, they should focus on providing better child care to families,” the researchers wrote.

Dr. Nix joined the faculty at the University of Southern California in 2017 after conducting postdoctoral research at University College London. She is a graduate of the University of North Carolina at Chapel Hill, where she majored in mathematics and economics. Dr. Nix holds two master’s degrees and a Ph.D. in economics from Yale University.

The full study, “What Causes the Child Penalty and How Can It Be Reduced? Evidence from Same-Sex Couples and Policy Reforms,” can be accessed here.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Related Articles

Latest News

Sherry Kollmann Named President of Vermont State University

With over 25 years of experience in higher education, business, and public service, Dr. Kollmann has been serving as chancellor of the New Mexico State University Global Campus. She is slated to become the next president of Vermont State University in July.

Stacy Leeds Will Be the Next President of the University of Tulsa

Throughout her career, Leeds has gained more than 25 years of experience as a professor and university administrator. Currently, she serves as dean of the Sandra Day O'Connor College of Law at Arizona State University.

Chantae Recasner Is the Sole Finalist for the Presidency of Olympic College in Washington

Dr. Recasner has over two decades of experience as a tenured faculty member and senior administration in higher education. She has been serving as the interim president of Seattle Central University.

Vanya Quiñones Appointed President of California State Polytechnic University, Pomona

Dr. Quiñones, who has been serving as president of California State University, Monterey Bay, is slated to become the first Latina president of California State Polytechnic University, Pomona on July 1.

Shawna Cooper Whitehead Named the First Woman President of Regis University in Colorado

Dr. Cooper Whitehead brings extensive experience in student affairs and academic leadership to her new role. She comes to Regis university from Boston College, where she has served as vice president of student affairs since 2021.

Director, School of Music

The University of Arizona School of Music seeks a visionary and collaborative Director to lead its comprehensive music program through a time of opportunity and transformation.

Assistant Professor, Clinician Educator track, in the Division of Genomic Diagnostics at the Children’s Hospital of Philadelphia (CHOP)

Children's Hospital of Philadelphia and the Department of Pathology and Laboratory Medicine at the Perelman School of Medicine at the University of Pennsylvania seek candidates for an Assistant Professor position in the non-tenure clinician educator track.

Communications Publications Editorial Manager (Website Content Manager)

The Website Content Manager serves as the primary website lead for the College, collaborating with team members across design, marketing, multimedia, public relations, and government affairs.

Assistant Senior Instructional Professor in the Social Sciences Core (Social Science Inquiry)

The Social Sciences Collegiate Division at the University of Chicago is now accepting applications for a full-time Assistant Senior Instructional Professor who will teach in and contribute to the management and administration of the Social Science Inquiry sequence in the Social Sciences Core.

Visiting Assistant Professor of Media Studies

The Department of Cinema & Media Studies at the University of Pennsylvania in Philadelphia invites applications for a one-year Visiting Assistant Professor position in the field of media studies.