The conversation surrounding childcare often revolves around early childhood education, casting a shadow over the concerns tied to school-aged children.
According to the Bureau of Labor Statistics, working parents with children 10-18 are the largest group in the US. Yet, as companies adopt expanded family benefits directly intended to level the gender pay gaps, they often focus only on the infant/toddler set.
The main issue lies in the misinterpretation of parents’ needs. The belief is that once kids reach school age, the childcare challenges and costs are resolved.
With workdays misaligned with school days, parents are left to fill the gaps to enable finishing the day’s work. The impacts both financially and professionally, particularly for women, underscores the burden of the “Mommy Tax”.
The “Mommy Tax” Unpacked
A perfect storm moment is upon us. Between the rising cost of childcare (in all forms), the recognition of gaps in traditional education, and the demands of working families for more comprehensive family benefits, a critical shift is unfolding. A key factor attributing to the lowest level of women participating in the workforce is the “Mommy Tax”. To date, the rate of working women shows levels not seen since the 1970’s leading to 80% of the gender pay gap in the U.S.
The Mommy Tax, at its core, is outlined by two key factors. First, the professional impact of lost professional growth opportunities is directly influenced by being a working mother. The second is the financial strain mothers of school-age children face to balance the misalignment of the workday and school day.
It’s widely accepted that women and men have income gaps. According to the U.S. Bureau of Labor Statistics, not only do women earn 82 cents for every dollar compared to men, but mothers also face an additional 5 percent income deficit per child compared to women without children.
The financial impact is further compounded by the affordability and availability of after-school and extracurricular programs for school-age kids. The National Center for Education Statistics reports that after-school enrichment programs can cost up to $224 per week per child, depending on location and program type. Single Black mothers, the largest demographic of single parents in the US and the lowest wage earners, find themselves shouldering a cost burden that reaches roughly 50 percent of annual income.
Impact of Inadequate Childcare
This upward trend in childcare costs, in the broader context, is building an exclusive market and marginalizing low- and middle-income families. The pursuit of availability often results in a compromise on quality, worsening the challenges of accessing high-quality services. A McKinsey report reveals that companies lose valuable talent as working mothers are compelled to make drastic career decisions. In their recent report surveying working moms, up to 37% suggest they will change jobs or leave labor entirely, further expanding the $57B economic impact to the US.
HR Leadership in Addressing the Crisis
HR leaders are now at a crossroads, requiring innovative approaches to retain and support their female workforce. In a world where families with children aged 10-18 represent the largest population of working parents, the need for companies to expand the definition of traditional childcare is imperative. This involves re-evaluating traditional childcare benefits and exploring collaborations with online educational marketplaces and options for parents with older children. These turnkey and cost-effective solutions allow working parents to balance work and home more easily.
The Digital Classroom: Redefining Education for School-Aged Children
The closure of schools during the pandemic began a seismic shift in the educational landscape, propelling parents to explore alternative learning for their children. Online educational platforms have emerged as a lifeline for working parents of school-age kids. These platforms offer an array of courses and activities that engage children, provide educational value, and support working mothers.
Prior to the pandemic, after-school care was already a critical need for working parents. According to the Afterschool Alliance, in 2020, two children were waiting to get into a program. However, the advent of COVID-19 caused a seismic shift, exacerbating these shortages. National reports now indicate that for every child in an after-school program, four others are waiting.
Not only did this drive up the cost of care, making it unattainable for many families, but the ripple effect saw women’s workforce participation reduce to a 33-year low, per a National Women’s Law Center report. The result? A twofold impact: squeezing an already tight market for after-school care and pushing many mothers out of the workforce due to the lack of support.
In response, online marketplaces for after-school programs are revolutionizing the way educational and enrichment activities are delivered, making them more accessible to a wider range of students. This digital shift has a significant benefit, particularly for students in remote or underserved geographic areas and children with disabilities who face additional challenges participating in traditional in-person activities.
EdWeek Research Center recently found that 73 percent of teachers acknowledge that digital tools complement traditional learning methods for after-school learning. Marketplaces catering to school-age kids and focusing on life-skills-building programs not only bridge the geographical gap but also allow for customized learning experiences catering to individual learning styles and needs.
Investing in Mothers is Investing in the Future
In the US this perfect storm isn’t just a family issue; it’s an economic and social crisis costing the economy a staggering $57 billion per year in lost earnings, productivity, and revenue (The Council for a Strong America). By investing in solutions that address the “Mommy Tax” and the post-daycare cliff, we foster a more equitable and productive society.
The collaboration between corporations and online childcare solutions marks a progressive step toward mitigating the “Mommy Tax.” Such partnerships are crucial in retaining talented women, fostering inclusive work environments, and supporting the overall well-being of working parents.
