GR

The Mommy Tax by Ann Crittenden

Women's Lives: Multicultural Perspectives

The Mommy Tax

Introduction

  • Ann Crittenden, a former economics reporter for the New York Times, addresses the economic disadvantages faced by mothers in the workplace.
  • She challenges the notion that women have achieved complete equality, highlighting the "mommy tax" as a major obstacle.

The Myth of Equal Pay

  • The Independent Women's Forum claimed women earn 98 cents to a man's dollar, implying equality.
  • Crittenden refutes this by pointing out that this applies only to young, childless women.
  • Mothers are the most disadvantaged in the workplace; motherhood is a significant barrier to economic equality.

The Ideal Worker

  • The ideal worker is "unencumbered," dedicated solely to their job, disadvantaging those with family responsibilities, primarily mothers.
  • Reduced earnings for mothers are effectively a "mommy tax".
  • This "tax" can exceed $1 million for college-educated women.
  • For working-class women, motherhood increases the risk of poverty.

Personal Experience

  • Crittenden left the New York Times after her son's birth to have more time for motherhood.
  • This decision cost her an estimated $600,000 to $700,000, not including pension losses.
  • She also missed out on potential stock market gains, which could have provided substantial retirement income.

Caregiving Penalties

  • Those caring for elderly relatives also face financial penalties, averaging $659,139 in lost wages, Social Security, and pension benefits.
  • Caregivers often miss promotions, training, and reduce work hours or quit jobs.

Factors Affecting the Mommy Tax

  • The mommy tax is highest for well-educated, high-income women and lowest for poorly educated women.
  • It's also higher for younger mothers with more children.
  • Anglo-Saxon countries, where mothers bear most childcare costs, have the highest mommy tax.
  • France and Scandinavia, with paid maternity leaves and public preschools, have the lowest.

Case Study: Virginia Daley

  • Virginia Daley was fired from Aetna after requesting flexible work arrangements post-maternity.
  • Aetna, despite being recognized for family-friendly policies, denied her requests and increased her workload.
  • Daley's lawsuit against Aetna was unsuccessful, with the jury believing she had "overextended" herself.
  • Her income loss over five years was significant, along with the loss of 401(K) contributions.

Academic Research

  • Research shows working mothers earn less per hour than childless women, even with similar education and experience.
  • Jane Waldfogel's research indicates that wage gains made by women in the 1980s primarily benefited women without family responsibilities.
  • By 1991, childless women earned 90% of men's wages, while mothers earned only 70%.

Reasons for the Wage Gap

  • The U.S. is one of the few countries without mandated paid maternity leave.
  • Lack of paid leave forces many mothers to quit their jobs, leading to lost income.
  • European research shows that mandated paid maternity leaves increase women's employment and wages.

Penalties for Career Interruptions

  • Women who take even brief unpaid career interruptions face penalties.
  • A study of 1974 female law school graduates showed significant earnings disparity compared to men, despite only slightly different work patterns.
  • Female MBAs who took an average of 8.8 months out of the job market earned 17% less than those without gaps in employment.

Impact on Working-Class Women

  • Working-class women are penalized for job interruptions, affecting seniority and eligibility for better jobs.
  • Training programs often occur after work, excluding mothers who need childcare.
  • Mandatory overtime also disadvantages mothers, potentially leading to job loss.

Part-Time Work

  • About 65% of part-time workers are women, and employers aren't required to offer equal pay and benefits.
  • Nonstandard workers earn about 40% less per hour than full-time workers.
  • Employers may perceive part-time mothers as having a "recreational" attitude towards work.
  • Workloads often remain the same or increase after switching to part-time.

Small Business Ownership

  • Many mothers start small businesses for flexibility.
  • Women owned 38% of U.S. businesses in 1999, up from 5% in 1972.
  • However, women-owned businesses are often small, home-based operations.
  • In 1996, they generated only 16% of total U.S. business sales.
  • Women receive only a small percentage of venture capital.

Productivity

  • Some suggest mothers are less productive, but this is controversial and unproven.

Discrimination

  • Occupations requiring nurturing skills (childcare, social work, nursing) are underpaid.
  • Men who are primary caregivers also face a "daddy tax”.
  • Discrimination exists against anyone who cannot perform like an "unencumbered" worker.
  • Employers often disapprove of part-time schedules and parental leaves for men.

Examples

  • Houston Oiler David Williams was fined for missing a game to be with his wife after childbirth.
  • Managers often value "face time" over productivity.

Strategies to Lower the Mommy Tax

  • The "be a man" strategy: Women postpone children to focus on career advancement.
  • This strategy works for a small number of women but has risks related to fertility and personal fulfillment.
  • Countries like France and Sweden share more of the costs of raising children, making it easier for women to work and be mothers.

The American Welfare State

  • The U.S. has a generous social welfare state that primarily protects soldiers, not mothers.
  • Men who interrupt civilian employment for military service face a "warrior wage gap" similar to the mommy tax.
  • The government provides extensive benefits to veterans, reducing the warrior tax.

Examples of Veteran Benefits

  • Reservist pay, preference for government jobs, educational benefits (G.I. Bill), housing loans, healthcare, subsidized childcare.
  • These benefits are available even for peacetime service.
  • There are no equivalent benefits for mothers.

Policy Recommendations

  • Expand antidiscrimination laws to cover parents.
  • Reconceptualize work design around masculine norms as discrimination.
  • Allow disparate-action suits against employers whose policies have a disparate impact on women.

The Ultimate Mommy Tax: Childlessness

  • The cost of children has led many women to forgo having them.
  • A significant percentage of educated women remain childless.
  • Many women who remain childless initially desired children.
  • This is the ultimate price of the "be a man" strategy.

Awareness

  • American women are often unaware that their choices between career and family are more limited than in European countries.
  • A woman's decision to have children is heavily influenced by her country's willingness to help with costs.
  • In the United States, the message is "mothers beware": you're on your own.