The statistic is all too familiar: compared to men in the workforce, the average working woman in America earns just 84 cents on the dollar. This “gender wage gap” has closed a bit over the years – in 1982, the same figure stood at 65 cents on the dollar – but it remains stubbornly persistent.

And the problem is even worse for working mothers.

According to a report from the Center for American Progress – released on August 7, Moms’ Equal Pay Day — working mothers earn just 63 cents on the dollar, compared to working fathers. Even among those who work full-time, the gap is wide: full-time working moms earn just 71% of what full-time working dads earn.

The same pattern holds across all racial and ethnic categories. Whether the working mother is white, African American, Latina, Asian American, or Native American, she will – on average – earn less than working fathers in the same racial or ethnic group.

A study commissioned by the U.S. Department of Labor found that the “mothers’ wage gap” means working moms will earn 15% less, over their lifetime, than working fathers. And the gap for working mothers of color is even wider.

Because 40% of families with children under the age of 18 are headed by single working mothers, the mothers’ wage gap has a major impact on the lives and well-being of American children. And the effects of this gap are also felt long after the children are grown: because working mothers earn less over their careers, they contribute less to Social Security, and have less savings to enable their possible retirement.

Why the disparity?

There are a couple of different explanations for this disparity. According to the Department of Labor, “the largest identifiable causes of the gender wage gap” – that is, the gap between all working women and all working men – “are differences in the occupations and industries where women and men are most likely to work.” In other words, women are less likely than men to work in high-paying jobs and professions.

But the situation is more complicated when you look specifically at working mothers. In addition to the differences in “occupations and industries,” working moms often struggle, as they prioritize the needs of their children over getting ahead at work – placing them further back on the track to promotions and higher earnings. And tending to a sick child almost always means missed work and lost wages.

For moms at the lower end of the income spectrum, the high cost of childcare often prevents them from working at all until their children are in school. And, though employment discrimination against women with young children is technically illegal, it remains a more-than-occasional reality that further depresses the earnings of working mothers.

What can be done?

Advocates for working mothers have proposed several policy initiatives to narrow the mothers’ wage gap, including:

• Enact the Paycheck Fairness Act – to strengthen existing laws against employment discrimination aimed at women and mothers.
• Pass legislation mandating comprehensive paid family and medical leave – to reduce the economic burden on working mothers who are also caregivers for their young children and, often, their aged parents as well.
• Provide publicly funded, affordable childcare – to make it possible for more mothers to enter the workforce and remain working for the long term.

Beyond these policy prescriptions, there is another idea that has been proven to produce measurable, positive results for working mothers and children. Unconditional Cash Transfers (UCTs) – no-strings-attached cash payments made to families living in poverty – not only help needy families get by from day-to-day, but they have been shown to increase the employment prospects of the working mothers who receive them.

“Study after study has shown that cash assistance – even in relatively small amounts – can make an enormous difference,” said Joe Knowles, founder and President of Family Health Project, which runs direct-giving programs in Greater Boston. Because direct-giving helps mothers pay for childcare, for transportation to and from work, and for uniforms and other work-related needs, they make it possible for many mothers to find a job, he explained.

“That means more mothers are able to enter the workforce, and even more are able to find a consistent job,” Knowles added. “Cash assistance, by itself, isn’t enough to eliminate the mothers’ wage gap, but it is a big step in the right direction.”

Family Health Project

At FHP, we are all too familiar with the struggle that moms encounter in order to provide for their families. Many of our moms report difficulties paying for cell phones, transportation, and childcare all impacting their ability to maintain a steady job and income.

One FHP mom in Lynn shared she used her monthly payments to cover car-insurance and cell phone costs. The ability to keep a working phone number has increased her ability to get cleaning jobs and having a car, which is shared amongst the family, has increased their overall family income.

Experiences like this prove that flexibility is key in allowing mom to decide where the funds are needed most. The data is clear, an unconditional payment of $400 a month, sustained over a period of time, has a transformational impact on families experiencing poverty.

As always, we invite you to make a gift today and thank you for joining us on our mission to disrupt poverty, one family at a time.