# The evolution of child-related gender inequality in Germany and the role of family policies, 1960–2018

**Source**: https://www.econ.lmu.de/en/latest-news/news/the-evolution-of-child-related-gender-inequality-in-germany-and-the-role-of-family-policies-1960-2018-844174ab.html
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# The evolution of child-related gender inequality in Germany and the role of family policies, 1960–2018

17 Feb 2026

The research article by Ulrich Glogowsky, Emanuel Hansen, Dominik Sachs, and Holger Lüthen is now published in the European Economic Review! We asked economist Emanuel Hansen, to share their key insights.

The research article by Ulrich Glogowsky, Emanuel Hansen, Dominik Sachs, Holger Lüthen is now published in the *European Economic Review*!

We asked economist
[Emanuel Hansen](https://www.econ.lmu.de/en/persons/contact-page/emanuel-hansen-672df20d.html) to share their key insights.

Discover how decades of family policy reforms shaped child-related gender inequality in earnings across generations of German mothers.\

#### **The gender pay gap remains a persistent and widely discussed issue. Your research addresses one of its key contributing factors—the earnings losses mothers face after having children.**

Indeed. We analyze the evolution and drivers of child-related earnings inequality in Germany between the 1960s and the 2010s. In addition, we investigate the causal effects of parental leave and benefit reforms on child penalties and the child-related inequality. Our analysis is based on rich pension register data that covers the complete earnings trajectories of German mothers born after 1934

Fig. 1. Child penalties for births between 1993 and 2008:

In Germany, mothers face a persistent child penalty in earnings—still around 60% even ten years after childbirth. Earnings drop sharply starting two months before birth, coinciding with the start of maternity leave, and begin to recover most noticeably around 36 months after birth, when parental leave typically ends.

#### **How have the earnings losses for mothers changed over the decades, and what does this reveal about the evolving impact of parenthood on women’s earnings?**

In our study, we find that over the decades, these earnings losses for mothers—commonly called child penalties—have grown significantly. In the 1960s, mothers saw a sharp earnings decline after childbirth, but their earnings rebounded quickly—within two months—and by ten years after birth, their earnings were about 35% lower than they would have been without children. However, by the 1980s, the situation worsened. Child penalties were larger in the short term (close to 100% in the first 6 months) and remained high in the long term, with penalties reaching around 56% ten years later. The 2000s saw an even greater increase in both short- and long-term penalties, with mothers facing an earnings reduction of about 62% even ten years after childbirth.

Fig. 2. Child penalties in West Germany in different decades

Child penalties — the percentage of earnings mothers lose due to having children — have grown substantially over the past decades. Mothers giving birth in the 1960s faced much smaller penalties than those in the 2000s.

### 

#### **To what extent has the growing child penalty contributed to overall gender inequality in the German labor market?**

Over the study period, while overall gender inequality in earnings decreased in Germany, child-related inequality surged. We show that the share of inequality attributed to children increased from 14% to 64%. About half of this shift comes from the higher child penalties we discussed above. The other half is driven by a remarkable increase in the earning mothers would have had without children. Specifically, mothers' earnings potential grew from 35% to 82% of men's earnings between 1980 and 2013, driven by higher education levels and increased female labor force participation. If there were no children, overall gender inequality would have dropped from 61% to 19%.

In summary, the growing child penalty was a major factor contributing to increased child-related gender inequality, but it was amplified by the fact that mothers had higher potential earnings—and therefore more to lose— in recent decades.

Fig. 4. Drivers of child-related inequality in earnings.

Mothers in more recent decades not only faced higher child penalties but also had higher potential earnings at stake (i.e., they would have earned more without children).

**How does this development differ in comparison to other countries?**

In Denmark and Austria, child-related gaps changed very little, while earnings inequality unrelated to children dropped. As a result, the share of inequality attributed to children increased. In Germany, this share also increased. But this was driven both by an increase in child-related gaps and a drop in other inequality.

**How have parental leave and benefit reforms influenced the rising inequality tied to motherhood?**

Between 1980 and 2006, six major reforms—mostly extending leave durations—led many mothers to spend more time out of the workforce. This alone accounts for around 22% of the rise in child-related inequality during that period, or nearly a third of the total increase.

The 2007 parental benefit reform, by contrast, helped reduce long absences from work by tying benefits to pre-birth earnings and shortening the benefit period. As a result, it slowed the growth of child-related inequality. Without this reform, inequality would have risen even more. Overall, while earlier reforms widened the gap, this last one helped keep it from growing further.

**What are the policy implications of your findings?**

Our findings suggest two key takeaways for policy. First, as mothers' earning potential rises, time out of the workforce becomes more costly—so reducing child penalties matters even more. Second, while family policies can shape inequality, not all have the same effect: extended parental leave tends to widen gender gaps, while well-designed short-term benefits can help reduce them. Importantly, not all drivers of inequality are bad news—the rise in mothers’ potential earnings is actually a sign of progress.

**Read the article:** Ulrich Glogowsky, Emanuel Hansen, Dominik Sachs, and Holger Lüthen: [The evolution of child-related gender inequality in Germany and the role of family policies, 1960–2018](https://www.sciencedirect.com/science/article/pii/S0014292125000686 "Link opens in a new window") In: *European Economic Review*

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