The earning power Kiwi women sacrifice when they leave work to have a child has been measured for the first time.
A study commissioned by the Ministry of Women has found when New Zealand women return to work after having a child they earn 4.4 per cent less on average than they would if they had remained childless.
When Kiwi women are away from work for over a year they experience an even greater drop off - an 8.3 per cent decrease in hourly wages.
The study "Parenthood and Labour Market Outcomes" was undertaken by researchers from AUT and the Motu Institute, and is designed to "help parents make informed decisions" about managing parenthood with employment.
"It could make a difference to women's careers if fathers dropped 3 hours a week and women worked 30 hours. It could build a family's economic resilience and allow more shared parenting," the Ministry of Women's policy director Margaret Retter said.
"Employers can support women taking career breaks, especially those wanting to transition back to the workforce, if and when they choose to do that. Employers can have a role, through human resource policies, keeping in touch while on leave, and ensuring they have flexible work available for all staff. They can ensure flexible hours are also available to fathers."
Other key findings from the study:
- Three out of five first-time mothers do some paid work by their child's first birthday.
- Mothers who take less than 6 months off work have the highest median hours (30), while women returning later work a median of 27 hours.
- Women with higher income before having children return more quickly to work.
- Longer absences decrease women's ability to secure higher paying work, regardless of previous employment, education, and earnings.
- Women on low incomes before childbirth are far less likely to return to work at all. Approximately, half are not employed in paid work ten years after their first child.
The full report can be read here .
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