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.