New Study Finds Mothers in Germany Earn Significantly Less than Child‑Free Women Four Years after Birth

A recent major study has revealed that mothers in Germany are facing a much sharper income penalty than previously estimated. According to research conducted by the Leibniz Centre for European Economic Research (ZEW) in collaboration with Tilburg University, women in Germany earn on average nearly €30,000 less in the fourth year after the birth of their first child compared with women of the same age who do not have children.

The new figure eclipses earlier estimates of approximately €20,000, underscoring the enduring “motherhood penalty” in the German labour market. The study analysed data from 186,000 mothers in Germany, making it one of the most robust investigations into post‑birth earnings differences yet.

The Depth of the Earnings Drop
In the fourth year after giving birth, mothers typically are earning nearly €30,000 less than their child‑free peers of the same age. This gap is more than simply a short‑term reduction in pay—it reflects lost career momentum, fewer hours worked, slower advancement and a lasting drag on income.

The study further highlights that the age at which a woman gives birth affects the magnitude and nature of the loss:

• Women who become mothers before age 30 often miss crucial early‑career steps and faster wage growth in those formative years, which compounds the earnings disadvantage.
• Women who have their first child later may face steeper immediate losses due to reduced working hours, but often can resume career earlier since they have already achieved stronger career positioning.

Underlying Causes and Broader Context
Economists point to several interacting factors in Germany that help explain why the motherhood earnings penalty remains large:

• Career interruptions or reductions in working hours to care for children, leading to slower wage progression.
• A labour market that still places a premium on uninterrupted employment and full‑time availability, making it harder for part‑time or returning mothers to catch up.
• Institutional and cultural features such as high prevalence of part‑time work among women, traditional gender norms around caregiving, and limited availability of flexible high‑quality childcare in some regions.
• The study notes that while overall gender pay gaps have narrowed in some respects, the component of inequality specifically tied to childbearing has grown.

Implications for Policy and Families
For individual women and families, the findings carry important implications: a near‑€30,000 reduction in income four years post‑birth can translate into lower savings, reduced pension contributions and diminished long‑term financial security.

For policymakers, the study highlights the urgent need to address structural barriers facing mothers in the workforce. Options include: investment in affordable, high‑quality childcare; incentives for full‑time or career‑track employment after birth; reforms to support flexible working while maintaining career progression; and addressing pay and promotion biases that disadvantage mothers.

The authors of the study emphasise that the earnings gap is not just a temporary lull—it can shape the lifetime earnings trajectory of women who become mothers early. That in turn has consequences for retirement income and gender inequality over the life‑course.

A Market Snapshot on German Labour and Motherhood
Germany has long struggled with aligning high female labour‑force participation with equitable earnings and career opportunities. While participation rates have improved, the “motherhood penalty” remains a stubborn gap. The new study suggests that even in a modern economy like Germany’s, having children still brings a heavy price in terms of earnings.

With Germany facing demographic headwinds and pressure to fully mobilise its workforce, tapping the potential of mothers is more than a fairness issue—it’s an economic imperative. As one recent commentary observed: Germany’s economy “leaves women’s labour power untapped”.

What to Watch

• Will German political parties and governments respond to this new data with fresh policy measures ahead of upcoming elections?
• Will employers adapt by providing more career paths for part‑time or returning mothers, or by redesigning jobs to allow flexible work without derailing advancement?
• How will the trajectory look for younger women who become mothers in Germany in coming years—will the gap widen further or begin to shrink given societal and policy shifts?

Conclusion
The new study paints a stark picture: for many women in Germany, motherhood still comes with a steep financial price tag. A gap of nearly €30,000 four years after birth is a reminder that despite advances in gender equality, parenthood remains a key inflection point in women’s careers. If Germany is serious about equalising opportunity and leveraging all of its workforce, closing the motherhood earnings gap now must become a priority.