Husband Tax? German Women's Earnings

Husband Tax? German Women's Earnings Decline After Marriage — New Study Reveals
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A recent study by the IFO Institute in Munich and the University of Oslo highlights a troubling trend: women's earnings in Germany drop by an average of 20% after they get married, while men's incomes remain unchanged.

One of the key findings of the research, entitled "The Marriage Earnings Gap," indicates that many women either reduce their working hours or completely exit the workforce due to increased responsibilities associated with marriage. On the flip side, men do not see similar wage changes following their nuptials.

Widening Income Disparities Post-Marriage 
Using pension insurance data, the study reveals that the income gap between men and women widens significantly after marriage, irrespective of whether couples have children. "Our research indicates that income discrepancies between the genders increase after marriage, regardless of childbearing," explained IFO researcher Elena Herold.

While men's salaries stay stable, women's income declines continuously over the years. Herold clarified that this decrease isn't solely linked to childbirth; even when this factor is considered, women's earnings still drop by 20%. When we include childbirth in the equation, the decline can reach nearly 50%.

Notably, the study found that couples who cohabitate before marriage do not experience the same financial repercussions. "For those who lived together prior to marriage, we observe no different effects compared to couples who cohabitate only after tying the knot," Herold stated.

She theorized that the increased legal security offered by marriage may motivate women to scale back their working hours.

Impact on Employment Post-Marriage 
The study indicates that the decline in income isn't due to lower pay rates; instead, it's primarily a result of reduced work hours. It reports that around one in ten women stop working altogether after marriage, while others work about 20% fewer hours, a trend that unfolds gradually over time.

Simultaneously, the amount of household labor performed by women increases proportionately, independent of any child-rearing duties. The findings showed no corresponding changes in men's contributions.

Tax Structure and Gender Norms Fuel the Trend 
A significant factor behind the decline in work hours is the tax structure in place. Herold pointed out that "a quarter of the income reduction for wives can be linked to the income-splitting approach for married couples."

Gender roles also contribute significantly to this dynamic. "Women raised in East Germany before reunification experience less negative impact compared to their West German counterparts," added Herold.

Women raised in the former East Germany (GDR), known for its more progressive gender norms, experienced a smaller decline in earnings after marriage compared to those from West Germany, where traditional gender roles were more prevalent.

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