Despite already earning 84 cents for every dollar a man earns, women face additional income reductions if they become mothers, known as the “child penalty,” which can result in a loss of up to $500,000 over a 30-year career. A new study has now identified another decline in earnings for women at the end of their childbearing years, termed the “menopause penalty.”
Economists from the University College London, University of Bergen, Stanford University, and University of Delaware determined that women experience an average 4.3% decrease in earnings in the four years following a menopause diagnosis, with losses increasing to 10% by the fourth year. The researchers analyzed population-wide data from Sweden and Norway, focusing on women born between 1961-1968 who received a menopause-related diagnosis between the ages of 45 and 55.
Lead author and UCL professor Gabriella Conti explains that about one-third of menopausal women receive a formal diagnosis, and the study concentrated on those with severe symptoms rather than a specific age range. The impact on earnings is not universal among all menopausal women, as the severity of symptoms varies. Symptoms such as tiredness, headaches, stress, and depression can affect work productivity, leading to reduced working hours and potential disability insurance claims.
While the research focused on Scandinavian countries, Conti believes the findings could be applicable globally, depending on healthcare access, treatment options, and workplace support for menopausal women. Creating menopause-friendly workplaces and accommodating women experiencing menopause could help mitigate the negative financial impact identified in the study.
Among the certified companies is CVS. Due to their findings on lost wages, the researchers are advocating for increased awareness of menopause, improved support, and better access to care. Each woman’s experience with menopause is unique, as noted by Conti in a press release. The study focused on women diagnosed with medical menopause, indicating potentially more severe symptoms. The impact of the menopause penalty varied greatly among women. Those most impacted in terms of reduced earnings and working hours were women without a university degree, who typically had lower incomes. Conti mentioned that educated women are usually more informed about menopause symptoms and treatments, potentially better equipped to manage work during menopause. Better information and access to menopause-related care are essential to eliminate the menopause penalty and enable workplaces to support women during this phase. For more on women’s health, click here: 5 symptoms women over 40 shouldn’t ignore. Gen Xers are advocating for menopause hormone therapies, as shown in this article. CVS becomes the first U.S. company designated as a ‘menopause friendly’ workplace. Actress Halle Berry is making waves in the $17 billion menopause care market.
