One of the Biggest Drivers of the Gender Pay Gap - And Steps Founders Can Take to Fix It

"While the gender pay gap has multiple causes, a growing body of research shows that motherhood is one of its largest drivers. Evidence shows that women's earnings often slow or decline after having children, while men's earnings frequently rise - a phenomenon known as the "motherhood penalty" and "fatherhood bonus.""

"The "motherhood penalty" refers to the financial and career setbacks women experience after becoming parents. For many women, earnings growth slows or reverses after having children, particularly when those children are young. Research commonly finds earnings declines of roughly 10-15% per child. At the same time, fathers often experience a "fatherhood bonus.""

"Flexible schedules, equitable parental leave and asking parents what they need are simple ways to prevent the motherhood penalty from compounding. Small, well-meaning workplace decisions can unintentionally advantage fathers over mothers, but intentional policies can reverse the trend."

The gender pay gap becomes concrete when women have children, creating the motherhood penalty where women's earnings decline or stagnate while men's earnings rise. Research demonstrates that motherhood is a major driver of the gender pay gap, accounting for a substantial portion of remaining disparities during prime working years. Women typically experience 10-15% earnings declines per child, while fathers receive a fatherhood bonus of 3-10% earnings increases. This phenomenon stems not from differences in education, skill, or ambition, but from workplace dynamics and policies. Small, well-meaning workplace decisions can unintentionally disadvantage mothers while advantaging fathers. Intentional policies including flexible schedules, equitable parental leave, and consulting parents about their needs can prevent the motherhood penalty from compounding.

Read at Entrepreneur