Working Moms with MBAs Pay a Price

August 4, 2010 RSS Feed Print
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We’ve all heard about the pay gap: Women earn less money than men. The reasons aren’t just sexism, although that likely plays a role. Contributing factors also include the fact that men and women pursue different fields and have different career ambitions; women are less likely to negotiate their salaries and ask for raises; and women are more likely to take breaks from the workforce to care for children and aging parents.

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But here’s another twist: Mothers might face the steepest pay gap of all. According to a new study from the University of Chicago Booth School of Business, which surveyed hundreds of recent graduates, mothers had less job experience, more job breaks, and shorter work hours. Men also tended to pursue lucrative finance courses and earn higher grade point averages.

The main difference that played the biggest role in creating a gender pay gap came down to factors that women have control over: career interruptions and weekly hours worked. In other words, women cut back on their work schedules in order to take care of their children.

Men, on the other hand, don’t experience the same pay decline when they become fathers. In fact, fatherhood had no effect on men’s earnings, work hours, or career interruptions. (Other studies have found that men’s income actually increases on average when they become fathers, perhaps because they feel more pressure to support their growing brood.)

What’s the takeaway message here? To me, it’s that working mothers still need better options that make it easier to combine work and family. While many workplaces offer flexibility in the form of telecommuting or negotiable work hours, women with MBAs who work in competitive companies clearly still find it difficult to put in the required hours while being full-time moms, too. I wonder if greater workplace flexibility would diminish the pay gap between mothers and fathers.

When I was reporting on my previous story on The New Mommy Track – before I became a working mom myself, and learned first-hand how difficult it can be – I spoke with experts who offered these suggestions:

[See Why Some Women Skirt the Wage Gap.]

Don’t feel guilty: If you’ve arranged that you’ll leave by 5pm every day, then try not to feel badly when you have to leave a meeting early. Guilt eats up your valuable (and limited) energy.

Suggest a trial period: When proposing a flexible schedule or working from home, suggesting a trial period can make it easier for your boss to agree to the plan, because she has an out if she feels it’s not working.

Earn it: If you prove yourself to be a productive worker, then your boss will want to keep you. Make sure you demonstrate how essential you are before asking for flexibility.

Ask for help at home: The partners of working moms play a big role in making their lives easier by taking on more responsibilities at home, including child care and household management duties.

What did I miss? Please add your own suggestions below.

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personal finance

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It seems that topics of conversation are almost always based on pay structures and gender origion, but what about the kids? Its alright to say that the mother is making more or as much as the father, but whos's raising the child? When people are returning to work after having a child I think it's important to understand that children need interaction with both parents regardless how much either of them make.

Rachael of ID 7:29PM August 07, 2010

I agree with many of your suggestions on how to design a career/job that gives you a bit more flexibility in order to be involved with your kids.

Women should start working on the proposals for work arrangements outside of the conventional 9-5 before maternity leave, continue to contemplate during leave, and make a proposal to their manager before returning. Your proposal should focus on OUTPUT rather than input, and demonstrate how you will contribute to the profitability and sustainability of the business - what manager will turn down a proposal that focuses on this? You also need to decide what you want. Do you want to pursue a full-time career or do you want to work part-time?

Be honest what this will mean in terms of your career progression and earning potential. Be honest on how you will spend your time if you do decide to work part-time. Are you exchanging a challenging work environment for laundry or for quality time with your kids? Once you're clear about what you want/need be sure to communicate this to your manager as soon as possible. If your proposal will impact your colleagues, discuss it with your colleagues before you discuss it with your boss. Build consensus and clarity.

Christine Brown-Quinn 10:05AM August 06, 2010

Alpha Consumer

Kimberly Palmer, senior editor for U.S. News & World Report, writes about making smarter financial decisions. She’s the author of Generation Earn: The Young Professional's Guide to Spending, Investing, and Giving Back.

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