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The Influences of Birth and the Child—Raising on Household Finances: An Analysis of Lost Income

In: Eurasian Economic Perspectives

Author

Listed:
  • Anna Jędrzychowska

    (Wrocław University of Economics and Business)

  • Ewa Poprawska

    (Wrocław University of Economics and Business)

Abstract

In personal finance, child rearing involves a stream of costs, incurred expenses, and lost profits. The second category includes the partial loss of earnings due to the breaks in parents’ (mainly mothers’) career paths resulting from pregnancy, maternity leave, and slowdowns. This article’s purpose is to propose a method of estimating a mother’s financial gap over the course of her whole career as a result of raising children. The article is the next stage of the authors’ research, in which the cases of 1–3 children and a wage growth rate consistent with data published by the Central Statistical Office (higher at the beginning of career) are analyzed. The considerations are universal and applicable to the realities of other markets, but the numerical illustration is based on Poland’s reality. The results obtained can be useful for determining compensation claims related to accidents that result in the death of a child. This analysis also contributes to the discussion of social programs being considered in Poland, such as an additional state pension for women with more children.

Suggested Citation

  • Anna Jędrzychowska & Ewa Poprawska, 2021. "The Influences of Birth and the Child—Raising on Household Finances: An Analysis of Lost Income," Eurasian Studies in Business and Economics, in: Mehmet Huseyin Bilgin & Hakan Danis & Ender Demir & Sofia Vale (ed.), Eurasian Economic Perspectives, pages 205-215, Springer.
    • Handle: RePEc:spr:eurchp:978-3-030-63149-9_13
    DOI: 10.1007/978-3-030-63149-9_13
    as

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