30.000 Euro Earnings Losses For Mothers

For many mothers, having children leads to a significant drop in income. In the latest episode of the ZEW podcast “Wirklich Wirtschaft,” Dr Lukas Riedel from ZEW's “Inequality and Distribution Policy” research group explains why new estimates conclude that the loss is even greater than previously thought. His study shows that in the fourth year after the first birth, the average income loss for mothers is around 30,000 euros—about one-third higher than under the previously standard estimation method. Riedel also explains how losses due to career breaks and part-time work are exacerbated by lost income growth—and what role childcare and reliable infrastructure play in ensuring that having a child does not necessarily mean a significant loss of income.

The interview was conducted by podcast host Fabian Oppel. The podcast is available on all major podcast platforms, such as Spotify, Apple Podcasts, or Deezer, as well as on the ZEW website.