What is child penalty in Economics?

March 15, 2018 12:02 am | Updated 12:02 am IST

Also known as the motherhood penalty, this refers to the adverse impact that giving birth to children has on the wages earned by women. Childbirth causes women to take time off work and make various other changes to their career choices, which in turn has a negative impact on their long-term income. Thus childless women are generally found to earn more than women who have children. The child penalty is considered by many to be the primary reason why women earn less than men in the labour market.

 

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