Mothers more likely to be in swamp between work and childcare than male partners, stalling their pay progression.
According to research from the Institute for Fiscal Studies (IFS) undertaken for the Joseph Rowntree Foundation, Well-educated mums who choose to work part-time still suffer a “pay penalty” over time, a new report has found.
Calls have been made for power-holders to “redesign the jobs market” after the IFS study shows the gender pay gap accelerates even more rapidly for mothers who opt for part-time jobs.
Study reveals, overall, the gender wage gap has fallen from 28% to 18% since the early 1990s for the less well-educated, but has remained stuck at 22% for the most educated.
Mothers tend to spend more time in part-time employment and therefore don’t reap the pay rises associated with more experience, research found.
A report, funded by the Joseph Rowntree Foundation, said, by the time a first child reaches the age of 20, mothers earn around 30% less on average than similarly-educated fathers.
The report also said, the gap is partly explained by mothers who work in part-time jobs or take a break from work altogether.
Even before they have children, women earn around 10% less than men, but the gap widens for many after they have children.
There are fears that progress in closing the gender pay gap has stalled, with the latest figures showing that the average female employee currently earns around 9.1% less per hour than the average male employee. While that has come down from about 30% in the early 1990s, the difference remains high.
About a quarter of the wage gap identified by the IFS comes as a result of mothers taking part-time work, while just a tenth of the gap is down to women taking time out of the labor market altogether for a prolonged period of time.
The report also highlights how women’s pay suffers at the hands of a cultural norm among nuclear families whereby women more typically juggle work with looking after children than their male partners. For men, part-time employment rates were essentially unaffected by the arrival of a first child, while women were shown to be significantly more likely than men to still be in part-time jobs when their first child reaches adulthood.
The lack of earnings growth in part-time work has a particularly big impact for graduate women, because they would typically stand to gain the most from rising levels of pay from remaining in full-time paid work. The report found that the wage gap has not fallen at all in the last 25 years for the highest-educated women due to this trend.
Monica Costa Dias, IFS associate director, said: “There are many likely reasons for persistent gaps in the wages of men and women which research is still investigating, but the fact that working part-time has a long-term depressing effect is an important contributing factor.
“It is remarkable that periods spent in part-time work lead to virtually no wage progression at all. It should be a priority for governments and others to understand the reasons for this.
“Addressing it would have the potential to narrow the gender wage gap significantly.”
Robert Joyce, IFS associate director, added: “It is now the highest-educated women whose wages are the furthest behind their male counterparts, and this is particularly related to the fact that they lose out so badly from working part-time.”
Sam Smethers, chief executive of the Fawcett Society, said: “What this study shows very clearly is that as a society we are not doing enough to value women’s talents. That is a blow to our productivity and a huge problem for the economy as a whole.
“We need to make it possible for part-time work to keep women on the career ladder.
“Employers should offer all roles, including more senior ones, as flexible working unless there is a good business case not to, and create more senior part-time roles.
“It is time to change our jobs market to one which helps parents, especially mothers, to get on.”
Helen Barnard, head of analysis at the Joseph Rowntree Foundation, said: “It’s just not right that we treat part-time workers as if they are less valuable than full-timers.
“The majority of women working part-time are mothers, who often work part-time so that they can also take care of children or other adults.
“But they pay a heavy price for trying to balance these two roles. The poverty rate for part-time workers is double that for full-time workers.
“We can do something about this and redesign the jobs market so it works for everyone. Employers can make that happen by increasing the number and quality of jobs that are open to part-time workers – and hire flexibly rather than only allowing existing employees to negotiate part-time hours.
“In the meantime, as child poverty rises, the Chancellor should show he understands these pressures and ease the constraints facing low income part-time workers and their families by lifting the benefits freeze and fixing Universal Credit so families keep more of their earnings.”
Dawn Butler, Shadow Minister for Women and Equalities, said: “This report reiterates the Government’s consistent failure to adequately tackle the gender pay gap.
“This week, we will be celebrating the centenary of women’s suffrage.
“Ministers must get serious, we can now mark 100 years since women were allowed to vote, but despite this milestone, women still face unacceptable pay disparities.
“The IFS report highlights the need to address the unacceptable fact that motherhood means some women take a hit to their earnings.”
The government has set a deadline for businesses with more than 250 staff to report their gender pay gap by 4 April. Some companies have already started reporting, which has faced sharp criticism after high-profile female employees were found to have salaries significantly lower than their male counterparts.