Murray Hill Institute
Newsletter
August 2004
Volume 1, Number 2

Introduction
Married women in the workplace some time ago realized how difficult it is to "have it all" as time constraints imposed by professional and managerial demands make it very difficult to juggle work and family, including spouse, children and even elderly parents. As a study reviewed in the last issue of this Newsletter indicated, women executives in particular are faced with more critical decisions in managing both careers and personal lives. Executive women reported that they delayed having children and a few decided not to have any. More men executives had children than executive women and 75% of executive men had a spouse/partner who was not employed.

Educated women face greater responsibilities
Between 1970 and 2002, the number of women in the US labor force doubled to 62.7 million, equal to 60% of the female population of working age. Not only have the numbers increased but so has the educational attainment of working women. Approximately half of all PhDs awarded to US citizens go to women. (The share falls under 50% when foreigners are included because a large number of them are men.) About half of medical school and law school graduates are women. Women MBAs lag somewhat, accounting for about one-third of all graduates. Women with a higher level of education are more likely to work since an education is considered an investment. Moreover, the concomitant higher responsibilities result in more time spent at work. Those long working hours, whether due to completion of a mega merger or saving a patient in complicated surgery, imply time away from family.

According to the US Labor Department, about 80% of women will have children during their lifetime. Most high-level working women, though not all, indeed are married, and most of them have children.

Given that women comprise half the population, employers, often with legislative prodding, have become more understanding of the challenges facing working mothers. Besides maternity leave, many large corporations offer a range of benefits to new mothers such as flexible work hours, child care, telecommuting, job sharing, and networking opportunities with other mothers. A number of women's magazines even conduct periodic surveys to determine the best companies for working mothers.

As the talents and contributions of executive, managerial, and professional women have been recognized, they rightfully have moved up the ladder in the corporate world. Women who have achieved responsible positions possess highly-developed skills that are hard to replace should they abruptly decide to drop out of the labor force, even for a short period of time. The higher the position of responsibility, the greater is the employer's loss. A Chief Financial Officer, Director of Marketing, or Head of Research generally does not have a replacement in waiting. Such positions often are filled only after a time-consuming and thorough executive search.

To work or not to work (at the office): That is the question
After childbirth a woman is faced with a profound choice: to return to work after a few months of maternity leave or remain at home full time for a much longer period to care for her newborn.

Statistics and anecdotal evidence indicate that more professional women are choosing to stay at home with their children or entering some arrangement where they can work part-time or work as much as possible from home.

In the US, each year the Bureau of Labor Statistics (BLS) of the Department of Labor compiles a report: "Employment Characteristics of Families." The latest data, covering 2003, reveal some interesting facts.

According to this survey, there were 75.3 million families in the US in 2003, and 82% had at least one employed member. Family, it is worth noting, is defined as "a group of two or more persons residing together who are related by birth, marriage, or adoption.... Families are classified either as married-couple families or as families maintained by women or men without spouses."

In 2003, there were 35.4 million families with children under 18 years of age. Of these, 97% of married-couple families with children had at least one parent employed: in 60.7% of such families both parents were employed, in 30.5% only the father was employed and in 5.5% only the mother worked. The percentages indicating only one parent at work rose not only over the previous year but, according to the survey "were at their highest levels since the two series began in 1994." While the BLS offers no explanation for this phenomenon, the difficult labor market after the 2001 recession—both men and women have been victims of massive layoffs—and the persistently high divorce rate that shows half of all marriages breaking apart may have been contributing factors. More mothers may work if the father has lost his position and is having difficulty finding another comparable job to support his family.

The same survey also provides detailed data on working mothers. In 2003, there were 36.5 million women with their own children under 18 years of age of which 72.3% were in households where their husband was present and the remaining 27.7% were widowed, separated, divorced, or never married. Approximately two-thirds of these women held jobs and another 5.9% considered themselves unemployed, that is, looking for work. Of those who were employed 74% worked full time (35 hours or more per week). The rest held a part-time job, allowing mothers to have more time to spend with children at home.

The labor force participation rate (those women working or in search of employment) for mothers of children younger than a year old was 53.7% last year, a percentage that has declined nearly every year since 1998 when it was 57.9%. While no official explanation is given, most likely it is due to new mothers staying at home. Moreover, the comparison of data for 2002 and 2003 showed a decline in the employment rate of women with children. For example, 54.1% of all mothers with own children under three years old were employed in 2003, down from 55.4% the year before.

There is a lot of anecdotal evidence to suggest that more mothers with very small children are choosing to stay at home or spend more time there. The Chief Economist of the US Labor Department, Diana Furchtgott-Roth, herself a mother of six, said in an interview that mothers who cut back on work to stay at home make "a valid choice" which should not be considered a "social problem," as some pundits would have it.

Maternity leave in the US varies according to employer. It is considered a "disability" and compensation during such leave "depends." The "Family and Medical Leave Act," enacted only in 1993, allows 12 weeks of unpaid leave to new parents working at firms with over 50 workers. This covers about two-thirds of the labor force but many smaller companies also offer this benefit. However, financially, some families simply cannot afford the loss of one spouse's income.

Fathers and families: The importance of their involvement
More and more companies are granting time off to new fathers. Even though a man can take advantage of paternity leave, it is a given that he will return to his job. Father's Day 2000 saw the launch of a magazine called "Dads," a publication aimed at an audience of young fathers who are trying to come to terms with working wives, children at home, long work hours, and much more.

The struggle to manage parental and professional responsibilities is a topic frequently covered in a regular column in the Wall Street Journal. Sue Shellenbargerís "Work and Family" column usually appears on alternate Thursdays and a collection of past issues can be found online. There is no question that there are many issues to deal with: Ms. Shellenbarger has been writing her column for over 13 years!

In a recent column examining the stages that women go through from early motherhood to re-entry into the labor force, she highlighted an organization called "Mothers and More." According to its web site, the group describes itself as "a non-profit organization dedicated to improving the lives of mothers through support, education and advocacy. We address mothers' needs as individuals and members of society, and promote the value of all the work mothers do." There are over 175 chapters throughout the US and one in London, England.

Earlier this year, an article about mothers juggling work and family roles was followed by another on how fathers deal with the issue. Many dads had contacted Ms. Shellenbarger, eager to share their experiences and demand equal coverage.

Finding a balance
In dealing with family and work issues parents have to set their own priorities, examine carefully their economic circumstances and decide what is in the best interests of all members. Employees of large corporations can take advantage of relevant company benefits and divide time between office and home. Some families simply may not be able to make ends meet without a second paycheck due to the high cost of living.

In certain cases, grandparents—especially if retired and living close by—can lend a hand in minding small children while parents work. Such an arrangement provides a family environment for the children and a useful outlet for grandparents' free time.

Women today are better educated than at any time in US history. As highly educated mothers, they are in a position to contribute significantly more to the upbringing of their children if they spend more time with them. As highly skilled, professional workers with a greater participation in the labor force, the entire economy has become more dependent on women and they are difficult to replace.

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Written by Vincenzina Santoro, M.A., International Economist and former Vice President of JPMorgan & Co., Inc.

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