Financial Feminist News: Aussie parents to earn retirement quids, Nigerian children’s art gallery making future bids, Lily Allen speaks out on career vs kids
Join Theme Song and Kate Crowhurst on "The Financial Feminist" as they delve into the realities and reforms aimed at bridging the gender wealth gap in Australia's retirement system and the global art market. In a recent episode, they examine Australia's progressive step of paying superannuation on government-funded paid parental leave, a pivotal move to mitigate the "motherhood penalty" that disproportionately affects working mothers' financial future. The policy stands as an exemplar for economic gender equality, hinting at the larger societal shifts needed to support women's financial security.
The conversation pivots to the innovative Nigeria Children's Art Gallery, which empowers young creatives by allowing them to generate income from their art, yet it highlights a vast gender pay discrepancy among professional artists. Alongside, Kate and pop star Lily Allen share insights into the personal cost of motherhood on women's careers, laying bare the societal pressures that force many to choose between professional aspirations and parenting. The Financial Feminist brings to the forefront these complex issues, underscoring the systemic changes necessary to establish equity and acknowledge contributions irrespective of gender.
This is a preview of the Shortform summary of the Mar 14, 2024 episode of the The Financial Feminist
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1-Page Summary
The gender wealth gap in retirement and Australia's new policy to pay superannuation on parental leave
Australia tackles the retirement gender wealth gap by introducing a new policy where it pays superannuation on government-funded paid parental leave. This initiative comes in response to women retiring with about 25% less super than men, often because of career breaks for child-rearing. It's a move advocated by the Women's Economic Equality Task Force to improve women’s financial security. The Grant Institute suggests that extra superannuation during early career breaks could increase retirement income by $356 yearly.
Working mothers face the “motherhood penalty,” which creates financial disadvantages due to primary caregiving responsibilities predominantly placed on them. The latest Australian scheme which benefits nearly 180,000 families each year, starting July 1, 2025, reduces the financial strain on parents and encourages more gender-balanced caregiving. This policy also rectifies the inconsistency of superannuation during parental leave, which was previously at the employer's discretion, and symbolizes a step forward in economic gender equality.
Providing income to children through art sales to address poverty and the gender gap in art
The Nigeria Children's Art Gallery is an empowering initiative that permits children aged between 4 to 17 to sell their art and retain 80% of the proceeds. This practice not only provides an income but encourages artistic development from an early age. Despite such efforts, female artists face significant barriers. Studies highlight that from 2008 to 2019, female artists accounted for a mere 10% of art auction sales and only 2% of overall sales, leading to a profound gender pay gap with a $192 billion sales disparity.
Top art institutions display an overwhelming bias, with Yale University’s analysis finding that male artists' works constituted 87% of the collections. This discrepancy is a global issue for the art market, emphasizing the need for systemic change to cultivate equity and recognize artistic contributions, irrespective of gender.
Reflections on the career impacts of motherhood and the inability to "have it all"
Kate Crowhurst and Lily Allen discuss the intricate ways motherhood affects women's careers, with Allen revealing that motherhood has significantly disrupted her career as a pop star. She challenges the notion of women being able to "have it all," pointing out the harsh reality of choosing between a career or children due to the "motherhood penalty."
Research shows stark disparities in career impacts post-parenthood between genders. In Australia, women often cut their work hours by 35% within the first five years of their child's life, resulting in them earning 55% less compared to their pre-pregnancy wage. Conversely, men's work hours and income are mostly unaffected, dipping slightly only in the initial month of fatherhood. These statistics underscore the unequal professional consequences parenthood has for men and women, perpetuating economic disparities.
1-Page Summary
Additional Materials
Clarifications
- Superannuation is a retirement savings system in Australia where employers are required to contribute a percentage of an employee's earnings into a superannuation fund. This fund is meant to provide financial support for individuals in their retirement years. The new policy mentioned in the text involves paying superannuation contributions during government-funded paid parental leave to address the gender wealth gap in retirement.
- The gender wealth gap refers to the disparity in financial assets and resources between men and women, often influenced by factors like income, savings, investments, and property ownership. It highlights how women tend to have less wealth accumulated over their lifetimes compared to men, impacting their financial security, particularly in retirement. This gap can stem from various factors such as differences in earnings, career breaks for caregiving responsibilities, and systemic biases in the workplace and financial systems. Policies and initiatives aimed at addressing this gap seek to promote economic equality and improve women's financial well-being over the long term.
- Australia's new policy pays superannuation on government-funded paid parental leave to address the retirement gender wealth gap. This initiative aims to provide financial support to parents during career breaks for child-rearing, particularly benefiting working mothers. The policy, effective from July 1, 2025, benefits nearly 180,000 families annually and encourages more gender-balanced caregiving. Previously, superannuation during parental leave was at the employer's discretion, but this new policy standardizes and enhances financial security for parents.
- The motherhood penalty is a term describing the disadvantages working mothers face in terms of pay, perceived competence, and benefits compared to childless women. It often results in a wage gap between mothers and non-mothers, impacting hiring, pay, and job evaluations. This penalty is influenced by societal perceptions and theories like the work-effort theory, affecting women's career progression globally.
- The statistics mentioned regarding art auction sales highlight the significant gender disparity in the art market. Female artists accounted for only 10% of art auction sales from 2008 to 2019, with a mere 2% share of overall sales, resulting in a substantial $192 billion sales gap. This data underscores the challenges faced by female artists in gaining recognition and equitable opportunities within the art industry. The statistics emphasize the pressing need for systemic changes to promote gender equity and fair representation in the art market.
- Gender bias in art institutions refers to the unequal treatment and opportunities given to artists based on their gender. Studies have shown that female artists face significant barriers in the art world, with a notable disparity in representation and sales compared to male artists. This bias is evident in the underrepresentation of female artists in top art collections and the lower percentage of art auction sales attributed to them. Addressing gender bias in art institutions is crucial for promoting equity and recognizing artistic contributions regardless of gender.
- The concept of "having it all" typically implies balancing a successful career, fulfilling personal life, and family responsibilities without compromise. It suggests the ability to excel in multiple areas simultaneously, often associated with women striving to achieve professional success while maintaining a happy family life. However, the reality of juggling these aspects can lead to challenges and trade-offs, highlighting the complexities and pressures faced by individuals, especially women, in trying to meet societal expectations of perfection. This concept has been a subject of debate and critique, as it can set unrealistic standards and overlook the sacrifices and struggles individuals may encounter in pursuit of this idealized balance.
- After becoming parents, women often reduce their work hours significantly, leading to a 55% decrease in earnings compared to before having children. In contrast, men's work hours and income are typically less affected by parenthood, with only a slight decrease in income observed in the initial month of fatherhood. These disparities in work hours and income post-parenthood contribute to ongoing economic inequalities between men and women in the workforce.
Counterarguments
- The policy may not fully close the gender wealth gap in retirement if other systemic issues are not addressed, such as wage inequality and part-time work penalties.
- The increase of $356 in yearly retirement income from extra superannuation may not be significant enough to impact the overall retirement wealth gap.
- The policy assumes that superannuation contributions during parental leave are a primary factor in retirement savings disparity, which may not account for other variables affecting women's retirement savings.
- The focus on superannuation payments during parental leave might overshadow the need for broader societal changes, such as flexible work arrangements and affordable childcare, which could have a more substantial impact on the motherhood penalty.
- The policy could inadvertently reinforce traditional gender roles by assuming women will be the primary beneficiaries of paid parental leave, rather than promoting shared parental responsibilities.
- The success of the Nigeria Children's Art Gallery in providing income and fostering artistic development does not directly address the gender gap in art sales and may not translate to systemic change in the art market.
- The statistics on female artists' sales may not account for factors such as the type of art produced, the marketing strategies employed, or the historical context of art collection that could influence sales figures.
- Discussions on the impact of motherhood on women's careers, such as those by Kate Crowhurst and Lily Allen, may not fully represent the experiences of all women, particularly those who successfully balance career and family or those who choose not to have children.
- The focus on the motherhood penalty might not sufficiently consider the experiences of fathers who take on primary caregiving roles and face career disruptions as a result.
- The data on Australian women reducing work hours and earnings post-parenthood may not capture the full range of factors influencing these decisions, such as personal choice, workplace policies, or the availability of part-time roles in certain industries.
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The gender wealth gap in retirement and Australia's new policy to pay superannuation on parental leave
In Australia, a significant policy reform aims to improve retirement outcomes for women. The Australian government now pays superannuation on government-funded paid parental leave to help close the retirement gender wealth gap.
Why the policy addresses the issue and its impact
The new policy recognizes that women generally retire with about 25% less super than men, largely due to career breaks taken to raise children. By paying superannuation on parental leave, the Australian government is taking steps to acknowledge and mitigate the implicit feminist issue: that women, over the course of their careers, often accumulate less wealth than men, leaving them in less secure financial positions as they retire.
Advocates and members of the Women's Economic Equality Task Force have long suggested such measures as vital to improving women's financial circumstances. The expected impact of this policy is considerable; the 2021 Grant Institute reported that 18 weeks of paid superannuation on parental leave taken twice during a woman's early thirties could boost her yearly retirement income by approximately $356.
Barriers facing working mothers and the "motherhood penalty" disproportionately faced by women
Women represent 88% of all primary carers who take leave, indicating a significant gender divide in caregiving responsibilities. This discrepancy contributes to what is known as the "motherhood penalty," where women face financial disadvantages in the workplace ...
Here’s what you’ll find in our full summary
The gender wealth gap in retirement and Australia's new policy to pay superannuation on parental leave
Additional Materials
Clarifications
- Superannuation is a retirement savings system in Australia where employers are required to contribute a percentage of an employee's earnings into a superannuation fund. This fund is designed to provide financial support for individuals in retirement. The recent policy change in Australia involves paying superannuation contributions during government-funded paid parental leave to address the gender wealth gap in retirement.
- The gender wealth gap refers to the disparity in financial assets and resources between men and women, often stemming from factors like wage gaps, career interruptions, and caregiving responsibilities. This gap can lead to women having less wealth and financial security compared to men, particularly in retirement. Policies like paying superannuation on parental leave aim to address and reduce this wealth gap by providing additional financial support to women during periods when they may be at a financial disadvantage. Closing the gender wealth gap is crucial for achieving economic equality and ensuring women have equal financial opportunities and security as men.
- Feminist issue: Refers to concerns related to gender equality and the challenges women face in society due to historical and systemic biases. It highlights disparities in opportunities, treatment, and outcomes between men and women, often leading to advocacy for policies and actions that promote gender equity. Feminist issues encompass a wide range of social, economic, and political factors that impact women's lives and opportunities. The term underscores the ongoing efforts to address and rectify gender-based inequalities and discrimination.
- The Women's Economic Equality Task Force is a group dedicated to advocating for policies and initiatives that promote financial equality for women. They focus on addressing gender disparities in economic opportunities, wages, and wealth accumulation to create a more equitable financial landscape for women. The task force works to highlight and combat issues like the gender pay gap, lack of representation in leadership roles, and barriers to financial security faced by women in various sectors. Their efforts aim to drive systemic change and improve economic outcomes for women in society.
- The motherhood penalty is a phenomenon where working mothers face disadvantages in pay, perceived competence, and benefits compared to childless women. This can result in a wage gap between mothers and non-mothers that is often l ...
Counterarguments
- The policy may not fully close the gender wealth gap, as it addresses only one aspect of the complex issue.
- The boost in retirement income might be modest in comparison to the overall retirement savings gap.
- The assumption that paying superannuation on parental leave will incentivize more men to take leave may not hold true if cultural and workplace norms do not also shift.
- The policy could have unintended consequences, such as employers being less willing to hire or promote women of childbearing age due to increased costs associated with parental leave.
- The effectiveness of the policy in achieving economic equality may be limited if not accompanied by broader reforms addressing wage inequality and part-time work disparities.
- The policy may not benefit all women equally, particularly those who are self-employed, work in casual or gig economy jobs, or do not qualify for government-funded paid parental leave.
- The focus on superannuation contributions during parental leave may overlook other critical periods when women's superannuation contributions ar ...
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Providing income to children through art sales to address poverty and the gender gap in art
The Nigeria Children's Art Gallery enables youth art sales and empowerment
The Children's Art Gallery in Nigeria stands as a beacon of empowerment for young artists. It exhibits and sells artwork created by children ranging from 4 to 17 years of age. Remarkably, these children artists receive about 80% of the proceeds from the sales of their artwork. This initiative not only allows the children to earn an income but also fosters their artistic talents from a very young age.
Barriers facing female artists across institutions and sales
Yet, despite these positive initiatives, female artists continue to face significant barriers throughout the art world. An analysis reveals that female artists' work accounted for less than 10% of the total art sales at auctions from 2008 to 2019, tallying only 2% of all sales. Consequently, a stark gender pay gap is evident between male and female artists, emphasized by a substantial $192 billion difference in sales.
Additionally, at some of the top ar ...
Here’s what you’ll find in our full summary
Providing income to children through art sales to address poverty and the gender gap in art
Additional Materials
Clarifications
- The Nigeria Children's Art Gallery operates as a platform that showcases and sells artwork created by children aged 4 to 17. The young artists receive approximately 80% of the proceeds from the sales of their artwork, providing them with an opportunity to earn income and nurture their artistic talents. This initiative serves as a means of empowerment for the children, encouraging them to explore their creativity and engage with the art world at a young age. The gallery plays a crucial role in supporting youth artists and fostering a sense of pride and accomplishment in their artistic endeavors.
- Female artists face significant barriers in the art world, including underrepresentation in gallery exhibits and art collections, as well as lower sales of their artwork compared to male artists. These disparities contribute to a gender pay gap in the art market, with female artists earning substantially less than their male counterparts. The lack of visibility and recognition for female artists in top art institutions and auctions further exacerbates these challenges. Addressing these barriers is essential for achieving gender equality and recognition for female artists in the art industry.
- The underrepresentation of female artists in the art world ...
Counterarguments
- While the Nigeria Children's Art Gallery initiative is commendable, it may not be scalable or applicable to all contexts, especially in regions with less interest in art or fewer resources to support such galleries.
- The 80% proceeds to child artists are generous, but it raises questions about the sustainability of the gallery itself and whether it can cover its costs and invest in growth or outreach.
- The focus on income generation for children through art might overlook the importance of formal education and the need for a balanced development that includes academic skills.
- The statistics about female artists' work and sales might not fully account for historical biases or the fact that the art world has been male-dominated for centuries, which could skew the representation of contemporary female artists.
- The gender gap in art sales and institutional representation may also reflect broader societal issues that cannot be resolved by the art market alone, such as gender roles and the undervaluation of work traditionally associated with women.
- The $192 billion sales difference between male and female artists is a stark figure, but without context regarding the total number of artists, the types of art being sold, and the prices of individual pieces, it's difficult to fully understand the disparity.
- The 87% representation of male artists in top U.S. art institutions might not consider the potential difference ...
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Reflections on the career impacts of motherhood and the inability to "have it all"
Kate Crowhurst and Lily Allen dive into the complex realities of motherhood and its impact on women's careers, contrasting this with the experiences of men in the workplace.
Lily Allen shares her personal experience and perspective
Lily Allen has shared her personal experiences on the challenging balance between motherhood and a career. She stated candidly that having children "ruined" her career as a pop star. Allen expressed frustration with the popularized notion that women can "have it all," suggesting that reality often requires you to choose between prioritizing a career or children.
The segment also introduces the concept of the "motherhood penalty," emphasizing the significant and disproportionate effects that having children has on women’s careers, notably in terms of employment rates, transitions, and status as compared to men.
Data and research on how parenthood affects men's and women's careers differently
The discussion extends to the broader labor market, examining data and research on parenthood's gendered effects on careers. In Australia, statistics reveal that women typically decrease their paid work hours by appro ...
Here’s what you’ll find in our full summary
Reflections on the career impacts of motherhood and the inability to "have it all"
Additional Materials
Clarifications
- The term "motherhood penalty" describes the disadvantages working mothers face in terms of pay, perceived competence, and benefits compared to childless women. It often results in a wage gap between mothers and non-mothers that is larger than the gender pay gap. Working mothers may also experience negative job evaluations, impacting their hiring, pay, and overall job experience. This phenomenon is influenced by various societal perceptions and theories, such as the work-effort theory and the concept of intersectionality.
- Women in Australia typically reduce their paid work hours by around 35% within the first five years after having children. This decrease in work hours often results in a significant income drop, with women earning 55% less than their pre-pregnancy wage. This statistic highlights the challenges many women face in balancing work and motherhood, leading to substantial changes in their employment status and income levels post-childbirth. The impact of motherhood on women's careers, as evidenced by these statistics, underscores the ongoing issue of gender disparities in the workforce.
- Men's paid work hours dipping only during the initial month of fatherhood before reverting to earlier levels can be attributed to factors like ...
Counterarguments
- While Lily Allen's experience is valid, it may not be universally applicable; some women have successfully balanced motherhood and careers, suggesting that individual circumstances, support systems, and career fields can influence outcomes.
- The idea that women cannot "have it all" may be challenged by advocating for societal and workplace changes that support work-life balance, such as flexible working hours, parental leave, and affordable childcare.
- The "motherhood penalty" is a significant issue, but it's important to recognize efforts being made in some sectors to mitigate this, such as implementing policies aimed at gender equality and supporting women's career progression post-motherhood.
- The statistics on women reducing their work hours post-pregnancy might not capture the full picture, as some women may choose to work les ...
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