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Economic Snapshot: Social Security Privatization's Motherhood Penalty
Economic Policy InstituteLink to more items from this source
Feb. 3, 2005

Excerpt: The earlier a person puts money into a private account, the bigger the effect on their retirement annuity. For example, $1,000 earned at age 18 adds almost twice as much to a worker's total private account than $1,000 earned at age 40. So, women face a tough choice if they reduce their earlier years in the labor force. This privatization solution prefers and subsidizes men, who are better able to enter the labor market early, and punishes women who take time-out early for child[.]

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