A new working paper by economists at UCL, the University of Bergen, Stanford, and the University of Delaware shows that menopause is as much an economic event as it is a biological one. In the four years following a menopause diagnosis, women’s earnings drop by 4.3%. By the fourth year, the loss reaches 10% (almost half of the 23% drop new mothers face).
How was the study done?
The researchers used administrative data from Sweden and Norway. They compared women diagnosed with menopause between the ages of 45 and 55 with those diagnosed later. This approach helped separate the impact of menopause from the effects of normal aging. The earnings decline comes with fewer working hours and a lower chance of staying in the labor force. In addition, disability insurance claims rise by 4.8% after diagnosis.
The study paints a varied picture. Women without a university degree suffer the worst losses, while graduate women seem to avoid the earnings drop.
Professor Gabriella Conti from UCL Economics explained that every woman goes through menopause, but the effects differ. She noted that the study focused on women with an official menopause diagnosis, suggesting these women might have experienced more severe symptoms.
“All women go through the menopause, but each woman’s experience is unique. We looked at women with a medical menopause diagnosis so these women may have experienced more severe symptoms than the general population. Our study shows how the negative impacts of the menopause penalty vary greatly between women,” said Professor Gabriella Conti.
Losses tougher in small firms
Some environments seem to ease the economic setback. The losses are tougher for those employed in small firms or the private sector compared to workers in larger or public organizations. A Swedish TV program on menopause led to a spike in diagnoses and treatment, including hormone replacement therapy (HRT). This boost in awareness even helped improve earnings for certain groups.
The authors call for greater public awareness and better access to healthcare during menopause. They suggest that small improvements in support and treatment could help many women stay on track with their careers. Policymakers need to give this issue further thought. The study offers a fresh perspective on a stage of life that many women face.
While biological changes are natural, the study shows how these changes can lead to lasting financial effects that touch individuals and society alike.
Citation:
Conti, G et al. (2025). The menopause “penalty”. 25/10. London: Institute for Fiscal Studies. Available at: https://ifs.org.uk/publications/menopause-penalty-0 (accessed: 23 March 2025).