Yahoo Finance The staggering difference between men and women’s pay after they have children
You race into the office, wiping baby vomit off your jumper while keeping an eye on the clock. You’re feeling stressed and guilty after dropping your crying child at nursery. Your colleagues are outwardly sympathetic, but you feel like they’re judging you for ‘not coping’ – and questioning your ability to work. But when your male co-worker is in the same situation, he’s seen as a devoted father going ‘above and beyond’ as a family man.
The motherhood penalty is well-documented, with recent research by the Fawcett Society finding that one in 10 working mothers have been forced to quit their jobs due to childcare pressures. However, another, closely-related phenomenon is less well-known: the fatherhood bonus.
A recent study found that men who become fathers benefit from “overvaluation” in their professional lives, whereas mothers experience the opposite. And as a result, they’re often undervalued and underpaid as a result.
Read more: Why employers need to embrace flexible working for dads
The research, conducted by Khadija van der Straaten, at the Rotterdam school of management at Erasmus University analysed the disparities in pay and progression for men and women working at multinational enterprises and domestic firms around the world both before and after they became parents.
By comparing the wages of more than 36,000 fathers, mothers, and employees without children across 57 countries, van der Straaten found that men benefited financially from parenthood, whilst women were penalised.
Fathers received a wage premium of $2 per hour in multinational companies and $1 per hour in domestic firms, compared to their childless male peers. Mothers, on the other hand, suffered a wage penalty regardless of where they worked.
“The workplace was set up along the lines of masculine norms and these remain deeply ingrained,” explains Sandra Ondraschek-Norris, vice president of Global Learning Design at Catalyst, a global non-profit organisation that helps build workplaces that work for women.
“Once fathers, they are rewarded with a ‘fatherhood bonus’ for taking on the expected role of chief provider, the ‘breadwinner’ for the family,” she says. “Meanwhile, mothers are expected to shoulder the burden of the childcare responsibilities.”
Read more: Why groupthink is responsible for some of the worst business decisions
Unlike the perception of mothers in the workplace, fatherhood is perceived to be a valued characteristic. It has been shown to signal greater work commitment and stability. On the other hand, however, employers often view mothers as unreliable or even incompetent due to the ‘distraction’ of family responsibilities.
However, these gendered expectations are harmful for men too, adds Ondraschek-Norris. “They may feel pressure to live up to society’s rigid standards of being ‘a man’ – meaning they must be strong, stoic, competitive and risk-taking,” she says.
Not only does a woman’s income drop significantly after women give birth – by about 45% in the UK and 40% in the US – but this penalty lingers for years. On average, new fathers experience no such hit to their earnings.
“The gender pay gap balloons over time and for women nearing retirement, it means that many will need to continue working longer than men or face poverty or an uncertain financial future,” explains Ondraschek-Norris.
So what can employers do to level the playing field for all employers, including parents?
“Companies need to be inclusive and supportive of all caregivers, no matter their gender. For instance, offering paid leave for caregiving responsibilities, such as caring for sick family members or newborns, and providing access to flexible work arrangements,” says Ondraschek-Norris.
Read more: Why psychological 'recovery' after work is so important
It’s also essential to address gender bias in performance evaluations and tackle assumptions that mothers are less committed to their jobs to ensure they have opportunities for career development. High-quality, affordable childcare is also key and may reduce the penalties mothers face by 25%, according to a University of Southern California study.
Flexible working for dads, as well as proper parental leave for fathers, allows parents to share childcare responsibilities. Not only does it give women the space to focus on work, it helps to break down harmful gender stereotypes. Openly encouraging and clearly advertising family-friendly policies allows men to focus on being a father without fear of being stigmatised or losing status in the workplace.
“Gender equity work has historically been framed as about women, for women and by women. This has led to a view of gender that lacks nuance,” says Ondraschek-Norris. “Culture change in corporations is only possible when we reframe this conversation, acknowledging that men have both a responsibility and an opportunity.
Watch: What to do when your employer changes their remote working policy
Download the Yahoo Finance app, available for Apple and Android.
