IFS - Gender wage gap grows year on year after childbirth as mothers in low-hours jobs see no wage progression

15 Sep 2016 08:56 AM

On average, women in paid work receive about 18% less per hour than men. IFS research published this week, funded by the Joseph Rowntree Foundation, shows that the wage gap is smaller when comparing young women – before they become mothers – with their male counterparts.

But the gap widens consistently for 12 years after the first child is born, by which point women receive 33% less pay per hour than men (see Figure).

The widening of the hourly wage gap after childbirth is associated with reduced hours of paid work, but not because women see an immediate cut in hourly pay when they reduce their hours. Rather, women who work half-time lose out on subsequent wage progression, meaning that the hourly wages of men (and of women in full-time work) pull further and further ahead. In addition, women who take time out of paid work altogether and then return to the labour market miss out on wage growth.

 Detailed findings include:

The gap in average hourly wages between male and female employees has been falling over the past two decades ... 

... but not among graduates or people with A levels

The gender wage gap increases gradually after the arrival of children. Possible explanations include mothers missing out on promotions or simply accumulating less labour market experience 

Taking time out of paid work is associated with lower wages when returning ...

... and working low numbers of hours is associated with less wage progression 

 Robert Joyce, Associate Director at IFS and an author of the report, said:

 “The gap between the hourly pay of higher-educated men and women has not closed at all in the last 20 years. The reduction in the overall gender wage gap has been the result of more women becoming highly educated, and a decline in the wage gap among the lowest-educated.

 “Women in jobs involving fewer hours of work have particularly low hourly wages, and this is because of poor pay progression, not because they take an immediate pay cut when switching away from full-time work. Understanding that lack of progression is going to be crucial to making progress in reducing the gender wage gap.”

  

Notes to Editors:

  1. The briefing note ‘The gender wage gap’, by Monica Costa Dias, William Elming and Robert Joyce, will be published online at http://www.ifs.org.uk/publications/8428
  2. The Joseph Rowntree Foundation is an independent organisation working to inspire social change through research, policy and practice. For more information visit jrf.org.uk JRF is on Twitter. Keep up to date with news and comments @jrf_uk. For press releases, blogs and responses follow @jrfmedia