Career Interrupted
The Economic Impact of Motherhood
Beata Caranci, SVP & Chief Economist | 416-944-5069
Date Published: October 12, 2010
- Category:
- Canada
- Labour
- Diversity & Social Studies
Highlights
- An aging population will place greater pressure on firms to attract and retain high-potential women to fill skill shortages.
- But, the Canadian workplace may be experiencing a topping out of female participation among the core working age group (25-44) – the feeder pool into higher level positions.
- The unexplained portion of the gender gap appears to largely capture a ‘motherhood gap’.
- Skills atrophy plays a smaller role in the motherhood gap than first thought.
- The length of absence is generally found to be less damaging than the frequency of absences.
- Women incur far less financial penalty the more experience they build before exiting, irrespective of the length of time they ultimately remain out of the workforce.
- Returning to the same employer also reduces the wage penalty.
- Firms should self-explore whether the non-linear career path of mothers is penalized as a negative signal of labour force attachment or ambition.
Full report in PDF format is available here.
Disclaimer
This report is provided by TD Economics. It is for informational and educational purposes only as of the date of writing, and may not be appropriate for other purposes. The views and opinions expressed may change at any time based on market or other conditions and may not come to pass. This material is not intended to be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be considered specific legal, investment or tax advice. The report does not provide material information about the business and affairs of TD Bank Group and the members of TD Economics are not spokespersons for TD Bank Group with respect to its business and affairs. The information contained in this report has been drawn from sources believed to be reliable, but is not guaranteed to be accurate or complete. This report contains economic analysis and views, including about future economic and financial markets performance. These are based on certain assumptions and other factors, and are subject to inherent risks and uncertainties. The actual outcome may be materially different. The Toronto-Dominion Bank and its affiliates and related entities that comprise the TD Bank Group are not liable for any errors or omissions in the information, analysis or views contained in this report, or for any loss or damage suffered.