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How much does motherhood cost women in Social Security benefits?
How much does motherhood cost women in Social Security benefits?
- Collection:
- Health Policy and Services Research
- Series Title(s):
- Center for Retirement Research working paper
- Author(s):
- Rutlege, Matthew S., author
Zulkarnain, Alice, author
King, Sara Ellen, author - Contributor(s):
- Boston College. Center for Retirement Research, issuing body.
- Publication:
- Chestnut Hill, MA : Center for Retirement Research at Boston College, October 2017
- Language(s):
- English
- Format:
- Text
- Subject(s):
- Child Rearing
Income -- statistics & numerical data
Mothers
Single-Parent Family
Social Security -- economics
United States - Genre(s):
- Technical Report
- Abstract:
- The increase in female labor force participation coupled with a higher number of women reaching retirement unmarried has increased the share of women claiming Social Security benefits earned through their own job histories. But they still bear the lion's share of caregiving responsibilities, and the previous literature has provided clear evidence that motherhood reduces earnings during the childbearing and child-rearing years. What remains understudied is the extent to which mothers face lower lifetime earnings and, consequently, lower Social Security income. This paper uses the Health and Retirement Study (HRS) linked to administrative earnings records to answer three questions. First, how much less do mothers earn over their careers compared to childless women, and how much less do they earn for each additional child? Second, how do Social Security benefits differ between mothers and non-mothers? Third, how does each of the existing elements of the Social Security system that indirectly help mothers--namely, spousal benefits and the progressivity of the benefit formula--contribute to reducing the motherhood penalty? The paper found that: (1) The lifetime earnings of mothers with one child are 28 percent less than the earnings of childless women, all else equal, and each additional child lowers lifetime earnings by another 3 percent. (2) When examining Social Security benefits, the motherhood penalty is smaller than the earnings penalty. But mothers with one child still receive 16 percent less in benefits than non-mothers, and each additional child reduces benefits by another 2 percent. (3) The per-child motherhood penalty is almost negligible among women receiving spousal benefits, but mothers who receive benefits on only their own earnings histories see significantly lower Social Security income than childless working women, and for each child. The policy implications of the findings are: (1) Mothers end up less well off in economic terms when spousal benefits are not available. (2) With the receipt of spousal benefits likely to continue its decline, policymakers may want to consider whether to compensate women for their lost earnings due to motherhood.
- Copyright:
- Reproduced with permission of the copyright holder. Further use of the material is subject to CC BY license. (More information)
- Extent:
- 1 online resource (1 PDF file (22 pages))
- Illustrations:
- Illustrations
- NLM Unique ID:
- 101727733 (See catalog record)
- Permanent Link:
- http://resource.nlm.nih.gov/101727733