Study Highlights 10 Percent Earnings Decline in Women Four Years After Menopause Diagnosis
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Women experience a significant fall in earnings in the years following a menopause diagnosis, with more women stopping work and others working fewer hours, according to a new UCL study published by the Institute for Fiscal Studies.
Economists at UCL, University of Bergen, Stanford University and University of Delaware calculated that women experience a 4.3% reduction in their earnings, on average, in the four years following a menopause diagnosis, with losses deepening to 10% by the fourth year.
This 10% reduction in earnings is approximately half of the estimated 23% loss of earnings experienced by new mothers, also known as the ‘child penalty’.
The main sample looked at women born between 1961-1968 who had a menopause-related diagnosis between the ages of 45-55.
The fall in earnings experienced by women during menopause was primarily driven by a decrease in the likelihood of working and a reduction in contracted hours worked, the researchers found.
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