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How the ‘Relocation Penalty’ Hurts Women’s Pay

How the ‘Relocation Penalty’ Hurts Women’s Pay

Update: 2024-10-21
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This podcast delves into the phenomenon of the "relocation penalty" for women, a significant contributor to the gender pay gap. The podcast explores how couples' decisions to relocate for a job often prioritize the man's career, leading to negative consequences for the woman's earnings and career progression. The research highlights that household decisions, rather than solely workplace bias, play a crucial role in this inequality. The podcast also discusses the changing job market, with remote work declining and companies embracing hybrid work models. This shift is leading to an increase in couples relocating for job opportunities, particularly as remote work postings decrease across industries. The podcast features a woman who moved from Denmark to England for her husband's career. She shares her personal experience of facing challenges with her degrees not being recognized, difficulty finding work, and feeling isolated. The move also negatively impacted her marriage. The podcast concludes by providing advice for couples relocating for a job, emphasizing the importance of open communication and contingency planning. It suggests having conversations about career goals and creating backup plans in case one partner struggles to find work or build their career after the move.

Outlines

00:00:13
The Relocation Penalty for Women and its Impact on the Gender Pay Gap

This chapter explores the "relocation penalty" for women, where couples moving for a job often benefit the man's career more, even if it means the woman takes a hit. The research highlights how decisions made within the household contribute to this inequality, impacting women's earnings and career progression.

00:01:57
The Changing Job Market and Relocation Trends

This chapter discusses the shift in the job market, with remote work declining and companies embracing hybrid work models. This trend is leading to an increase in couples relocating for job opportunities, particularly as remote work postings decrease across industries.

00:04:42
The Significance of the Relocation Penalty and its Long-Term Impact

This chapter highlights the "relocation penalty" for women, a significant factor contributing to the gender pay gap. It emphasizes that decisions made within the household, such as prioritizing the man's career, can negatively impact women's earnings and career progression. The chapter also discusses the long-term consequences of the relocation penalty for women, including potential salary losses that can take years to recover.

00:05:54
Personal Experiences and Avoiding Career Setbacks During Relocation

This chapter features a woman who moved from Denmark to England for her husband's career. She shares her experience of facing challenges with her degrees not being recognized, difficulty finding work, and feeling isolated. The move also negatively impacted her marriage. The chapter also provides advice for couples relocating for a job, emphasizing the importance of open communication and contingency planning. It suggests having conversations about career goals and creating backup plans in case one partner struggles to find work or build their career after the move.

Keywords

Relocation Penalty


The economic disadvantage experienced by women when a couple relocates for a job, often resulting in lower earnings and career setbacks for the woman.

Gender Pay Gap


The difference in earnings between men and women, often attributed to factors like workplace bias, discrimination, and societal expectations.

Hybrid Work


A work model that combines remote work with in-office work, allowing employees to have flexibility while maintaining some level of in-person collaboration.

Remote Work


A work arrangement where employees perform their jobs from a location other than a traditional office, often from home.

Household Decisions


Choices made within a family or household regarding finances, career paths, and other matters that can impact individual members' opportunities and outcomes.

Contingency Plan


A backup plan or strategy developed in advance to address potential challenges or unforeseen circumstances, providing a course of action if the initial plan fails.

Q&A

  • What is the "relocation penalty" for women, and how does it contribute to the gender pay gap?

    The "relocation penalty" refers to the economic disadvantage women often face when couples move for a job. This penalty can result in lower earnings and career setbacks for the woman, contributing to the overall gender pay gap.

  • How has the job market changed in recent years, and how is this affecting relocation trends?

    The job market is shifting away from remote work and towards hybrid work models. This trend is leading to an increase in couples relocating for job opportunities, as remote work postings decline across industries.

  • What are some key factors that contribute to the relocation penalty for women?

    Household decisions, such as prioritizing the man's career, play a significant role in the relocation penalty. These decisions can lead to women taking career hits or facing challenges in building their careers after a move.

  • What advice can couples follow to avoid career setbacks when relocating for a job?

    Open communication and contingency planning are crucial. Couples should have conversations about their career goals and create backup plans in case one partner struggles to find work or build their career after the move.

Show Notes

As more people relocate for a job, research shows that couples are more likely to move when it benefits the man, even if the woman’s career would gain more from moving. Wall Street Journal reporter Dalvin Brown joins host J.R. Whalen to discuss the resulting pay gap between men and women.




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How the ‘Relocation Penalty’ Hurts Women’s Pay

How the ‘Relocation Penalty’ Hurts Women’s Pay

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