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Abstract

Objectives: While prior research demonstrates the negative impacts of adult caregiving on women’s employment, less research examines how women’s employment changes when beginning a new caregiving role. Methods: Using data from eight waves of the Health and Retirement Study (2004–2018), I examine changes in women’s employment when first transitioning into parental caregiving between the ages of 50–60, by analyzing changes in labor force participation, work hours, and hourly wages. Results: The transition into parental caregiving was not associated with women exiting the workforce or decreasing their work hours. However, caregivers did experience a decrease in inflation-adjusted hourly wages compared to non-caregivers, with the greatest wage penalties associated with high-intensity caregiving situations. Conclusion: Results demonstrate how parental caregiving may act as a shock to women’s financial health at a critical career stage. This study highlights the less visible, but detrimental, financial consequences women experience when taking on a family caregiving role.

Keywords

caregiving care transitions employment penalties women’s employment

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New Role,New Paycheck: The Impact on Women’s Wages When Becoming a Caregiver for an Aging Parent

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