Denmark’s family safety net slashes the motherhood wage penalty by 80%, study finds

A Danish study of 104,361 women finds that subsidized child care, paid parental leave, and other benefits offset about 80% of the earnings losses mothers face after childbirth, reducing a typical 20-year motherhood penalty from around $120,000 to roughly $20,000 in lifetime income. The largest penalties occur in the first year after birth, and while benefits help, they do not fully erase the gap, illustrating how strong public support for families can promote gender equality in earnings.