Parenthood, Child Penalties and Family Policy
How becoming a parent reshapes earnings-and the policies that can narrow the child penalty.
Credit: Sarah Chai on Pexels
Having children affects men and women differently.
Across countries, women's employment drops sharply after the birth of their first child, while men's employment remains largely unchanged.This is known as the child penalty - the reduction in women's employment relative to men in the years following parenthood.
As of 2024, our research shows:
OF WOMEN LEAVE THE LABOUR FORCE IN THE FIRST YEAR AFTER HAVING THEIR FIRST CHILD
ARE STILL ABSENT AFTER FIVE YEARS
ARE STILL ABSENT AFTER 10 YEARS
Research by Henrik Kleven, Camille Landais and Gabriel Leite Mariante shows that:
- The magnitude and persistence of child penalties across more than 130 countries through the Child Penalty Atlas.
- How cultural norms and expectations shape mothers' and fathers' responses to parenthood.
- The power of policies - including paternity leave, childcare provision, and tax incentives - to reduce gender gaps.
Cross-country variation provides unique lessons on how governments and employers can design systems that support families more equitably.
Gabriel Leite Mariante explains the child penalty research
Gabriel Leite Mariante
Assistant Professor of Economics at CUNEF. Gabriel's research focuses on labour markets, social protection, and gender inequality, primarily in low- and middle-income countries.
These patterns are a major driver of gender inequality in the labour market. In fact, in high-income regions, up to 80% of the gender employment gap is explained by women leaving work after having children.
The scale of the child penalty varies across the world. In Europe, it is high despite relatively strong labour markets. In lower-income regions, women often leave work earlier, meaning motherhood explains less of the gap - but overall inequality remains large.
These differences point to the importance of policy. Gender norms, access to childcare, and workplace flexibility all shape whether women remain in employment after becoming mothers.
Policies that can help include:
- Supporting shared parental responsibilities
- Improving access to childcare
- Expanding flexible working rights
- Supporting re-entry into the workforce
Addressing the child penalty is essential for reducing gender inequality - and for ensuring that women's skills and education are fully used in the economy.
