I’ll cost you big bucks (Photo: Getty Images)
Children, it appears, are more expensive than we thought.
We all know about diapers and formula (or a breast pump) and eventually college. But a pair of recent studies suggest that having babies might cost more than we thought. It’s not just that your expenses go up when you have a kid. It’s likely that your income goes down as well. Both studies are focused on the wage effect of having children, and both find that women and to a lesser extent even men who have kids end up making less than their childless peers. And the difference can be large, as much as 40% less. The studies show that the wage effect can have a significant impact on when women chose to have children, as well as what professions they pick. That’s bad news. Here’s why:
