Economic Engagement of Mothers: Entrepreneurship, Employment, and the Motherhood Wage Penalty

Abstract

The economic value women bring to their own households and to the broader economy is well-documented. In fact, nearly all of the economic gains that have occurred among middle-class families since 1970 have come from the increased earnings of women.

Mothers make substantial contributions to the finances of many families and households. In 2018, nearly half of the more than 30 million families with children under 18 in the United States had either a single mother or a married mother contributing at least 40% of a couple’s joint earnings.