How big is the ‘motherhood penalty’? In Denmark, it adds up to $120,000
Article Date: 23 February 2026 | Author: Sarah Wild
Summary
An analysis of Danish registry data for women born 1962–1965 finds that mothers lost, on average, a cumulative US$120,000 in income over the two decades after the birth of their first child compared with matched women who remained childless. The study, published in the European Sociological Review, includes more than 100,000 mothers and ~15,000 childless women matched by education, location and social history.
Danish state transfers — paid parental leave, child allowances and housing benefits — covered about 80% of the income gap. The penalty was largest in the child’s early years and diminished over time but persisted for roughly twenty years. Authors note that recent policy expansions (more parental leave, non-transferable paternity leave) would likely shrink the gap if newer cohorts were analysed. Scholars caution, however, that transfers are not the same as pay for labour and that differences between mothers and fathers (especially in private-sector, high-earning roles where bonuses matter) remain a significant issue.
Key Points
- Mothers in Denmark lost, on average, US$120,000 in cumulative income in the 20 years after their first child, relative to comparable childless women.
- Danish state support (maternity/parental leave, child allowances, housing benefits) compensated about 80% of the lost income.
- The income penalty is largest in the early years after childbirth but persists for two decades.
- Policy changes (expanded parental and paternity leave) could reduce future gaps, but transfers don’t fully substitute for lost wages and career progression.
- Wider gender pay gaps — particularly between mothers and fathers in private-sector, high-paid roles with bonuses — mean public transfers alone are unlikely to eliminate inequality.
Context and relevance
This paper joins a robust literature showing a global ‘motherhood penalty’ in earnings and promotion prospects. Comparable findings include a UK study (mothers lost ~£65,618 over five years) and evidence from China where penalties grow with number of children. Denmark’s relatively generous welfare provisions substantially cushion financial losses, illustrating how policy design influences long-term economic outcomes for parents.
The study is relevant for anyone interested in labour economics, gender equality, family policy or workplace practice. It shows that public policy can blunt—but not fully erase—long-term economic penalties tied to caregiving roles.
Why should I read this?
Look — if you care about gender gaps, pay fairness or whether parental policies actually work, this is a neat, data-driven snapshot that saves you digging through dense stats. In plain terms: even in generous welfare states, having children still hits mothers’ incomes hard and for years. The study tells you how big the hit is, how much the state chips in, and why that doesn’t solve everything. Worth the quick read.