Business & Investment

This calculator shows “rigorous math” about how much it costs to leave the workforce during COVID

It’s not just your salary.

A tool From the Center for American Progress (CAP), anyone can calculate the total economic cost of leaving the workforce based on not only salary losses, but also retirement savings and social security impacts.

The results can be dramatic.

For example, if a 35-year-old woman earns $ 100,000 and takes a two-year break from the workforce, she loses not only $ 200,000 in salary, but also $ 134,524 in wage growth and $ 111,767 in retirement assets, for a total. You will incur a loss of $ 446,291. If she extends the break to five years, she will lose $ 1,020,936.

The Center for American Progress has launched a tool to highlight the childcare crisis in the United States, but it’s new, given the number of parents (especially women) forced to rescheduling their work. Leave the workforce To provide full childcare from last spring. A Washington post Voting “More than three-quarters of U.S. mothers and more than half of their fathers say they have abandoned work opportunities, changed jobs, or quit to take care of their children.” Indeed, they developed the calculator. As Michael Madwitz, CAP Economist NoteSince 1986, women’s employment and labor force participation has never been so low. Madwitz writes.

Minneapolis Federal Reserve Bank and US Census Bureau Misty L. Hegenes Similar conclusions in recent working papers.. “Overall, the pandemic seems to have caused a unique and immediate juggling act for working mothers of school-aged children,” she wrote. She found that “there is a 53.2% higher chance of having a job than a mother with early closure than a mother with early closure, but not as a result of early closure.” (She did not affect working fathers or working women who had no school-age children.)

The fact that some public schools have not yet resumed face-to-face learning is a fact that schools, especially among younger children. Not shown to spread the virus And that removes the essential support for American families. As Heggeness says, “Childcare and school education are not only essential to the development of human capital for our youth. They are also important policy interventions for the full employment of parents, especially mothers. . “

And once again, any tension that white mothers may feel becomes even more difficult for black and Latin mothers. As the CAP outlines, “especially black, Latino, and indigenous women face cross-repression, but they also feel the multiple implications of their likelihood. Lost workAs an indispensable worker, we will be at the forefront and solve childcare issues ourselves. “

Madwitz concludes that mothers who earn less and tend to live longer than their partners: “The cost of vacation opportunities was already a big blow to parents before COVID exacerbated childcare and school access problems. It’s still the same.”

More must read Finance coverage From Fortune:

This calculator shows “rigorous math” about how much it costs to leave the workforce during COVID

https://fortune.com/2021/01/04/covid-economy-leaving-workforce-cost-calculator-childcare-women-us-coronavirus/ This calculator shows “rigorous math” about how much it costs to leave the workforce during COVID

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