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Moms tend to be less rich than women who do not have children

The study, conducted in Germany exa,mined the wealth of 28650 women to determine their personal wealth during the span of 10 years from 2002 until 2012. In the study, the term “personal wealth” refers to any economic asset that individuals own for themselves in addition to their part of the assets they share with a partner.

We discovered that every year following the first baby was born, she earns just 98 cents per every EUR1 of wealth women without children earn. The small amount of difference can add up throughout. After a mother’s existence for over 50 years, the mother’s fortune is about 60% less than the typical German woman who doesn’t have children, with everything else being equal.

Graph that shows the gender gap in the amount of wealth that women earn after having children. Lersch/Jacob/Hank

The difference in capital is primarily due to work. German mothers have less wealth due to their tendency to quit paid job in order to look after their infant kids and, when children grow old, return to work part-time.

If they aren’t employed full-time, women have less money to put into savings. The gap in employment can also affect the likelihood of earning in the long run because career advancement is harder to achieve.

Based on our research, male partners of women don’t seem to make up for the loss in wealth through the sharing of financial resources within the couple.

Germany has no structures to assist mothers with their childcare. Thomas Peter/Germany

The loss of personal wealth is more severe when a woman is younger than she is becoming mother. This could have to do with the fact interruptions to careers during the early years of a person’s working career are particularly harmful.

Mothers also earn less even if they’re not married at the time they give birth; this is true for single mothers as well as couples who live together. This study suggests that married fathers could be more likely to pay for their spouse’s income losses, and married fathers and mothers have a higher likelihood to divide their earnings.

In middle age (ages 40-60), parents and mothers exhibit the highest disparity in terms of wealth (see the graph above). At a later age, this disparity decreases.

How do wealth differences affect us?

The less amount of money mothers earn in comparison to fathers and women who do not have children has many significant consequences.

Savings and financial assets are a source of funds that can be used to help weather the rainy days regardless of income. It is also possible to pass wealth to the next generation, or put in education, which can, in turn can affect the health of children.

If a woman is living with an heir to wealth, the fact that she has a small amount of wealth might appear to be less significant. However, as we all know couples are not always able to fully be able to share all of their assets.

In any case, inequalities in personal wealth within a household are also detrimental to women. German females reported less subjective wellbeing in the event that they had less money than their spouses. Studies conducted in Ecuador Ec,uador, and Ghana have demonstrated that the danger of violence between intimate partners is higher when women’s wealth is less than their spouses. However, we don’t know if those findings apply to Germany or in other countries.

In addition, the economic disparity between fathers and mothers could impact children. When mothers have more resources in their lives, the wellbeing of children is enhanced. When couples split and have gender-based inequalities within the couple, it can ultimately lead to differences between former partners.

International differences

Our study looked at the effects on wealth of having children in Germany, which is a country where women have enjoyed an equal standing with men in a variety of ways. However, there is a traditional system of division of labor that has men as the main breadwinners prevails in this country.

Another study, although made with less accurate information, has also revealed an income gap between males and females across the United States. Additional evidence of income disparities between fathers and mothers has also been discovered in a variety of nations around the globe, such as ChinaJapanNigeria, and the United Kingdom.

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Jane S. King

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