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Home Science & Environment

Women’s earnings fall 10% four years after menopause diagnosis todayheadline

March 21, 2025
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Women experience a significant fall in earnings in the years following a menopause diagnosis, with more women stopping work and others working fewer hours, according to a new UCL study published by the Institute for Fiscal Studies.

Economists at UCL, University of Bergen, Stanford University and University of Delaware calculated that women experience a 4.3% reduction in their earnings, on average, in the four years following a menopause diagnosis, with losses deepening to 10% by the fourth year.

This 10% reduction in earnings is approximately half of the estimated 23% loss of earnings experienced by new mothers, also known as the ‘child penalty’.

The researchers analysed data from Sweden and Norway, including medical records that identified the date of the first menopause diagnosis. The researchers compared women who had received a diagnosis to women who had received a diagnosis later to disentangle the impact of menopause from the general impact of ageing.

The main sample looked at women born between 1961-1968 who had a menopause-related diagnosis between the ages of 45-55.

The fall in earnings experienced by women during menopause was primarily driven by a decrease in the likelihood of working and a reduction in contracted hours worked, the researchers found.

In the four years following a menopause diagnosis, the likelihood of claiming Disability Insurance benefits increases by 4.8%, suggesting that menopause symptoms significantly impact women’s work patterns, the team said.

The researchers are calling for better information about the menopause to be available and for women going through the menopause to have better access to menopause-related care.

Lead author Professor Gabriella Conti (UCL Economics) said: “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.”

The fall in earnings and hours worked is concentrated among women without a university degree, with graduate women suffering no earnings penalty, the researchers found.

Professor Conti said: “Graduate women tend on average to be better informed of menopause symptoms and more aware of their treatment options. This may mean they are better equipped to adapt and continue working throughout their menopause.

“Our findings suggest that better information and improved access to menopause-related care are crucial to eliminating the menopause penalty and ensuring that workplaces can better support women during this transition.”

The study found some workplaces to be more ‘menopause friendly’ than others, with women employed in smaller and private sector firms facing a greater drop in earnings than those with larger and public-sector employers.

Researchers also considered the impact of menopause diagnosis on demand for medical care. Unlike the long, sustained impact on earnings, a menopause diagnosis caused a sharp but short-lived increase in GP and specialist visits, followed by a prolonged increase in medication use.

The data showed a rise in the use of HRT to treat the physical symptoms of menopause, but it also highlighted a 5.1% rise in the use of antidepressants following a menopause diagnosis.

The study also assessed how greater awareness affects menopause-related care by leveraging the broadcast of a landmark menopause TV show called Klimakteriet: Det ska handa dig med (‘Menopause: It will happen to you too’) on Swedish television.

Researchers found the broadcast led to a surge in diagnoses and HRT prescriptions, likely driven by both increased patient demand and physician responsiveness. The findings suggest that public awareness can lead to lasting improvements in diagnosis and treatment, particularly benefiting women with lower education levels.

Co-author Professor Rita Ginja of the University of Bergen said: “We were surprised to find so few studies looking at the economic effects of menopause, something that more than half of the world’s adults will experience. We hope that our work can help shed more light on how menopause affects the careers and economic well-being of women.”

Professor Conti said: “As societies age and economies depend on longer working lives, policymakers must understand the forces pushing women out of the labour force. Our findings suggest that menopause is one of them.”

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Tags: earningsMenopauseWomen
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