Overview

• The Ifo Institute's study shows that women’s earnings drop by an average of 20% after marriage, regardless of whether they have children.
• Men's incomes remain largely unaffected following marriage, widening the financial disparity between spouses.
• The study attributes part of the income reduction to Germany's tax system, with the Ehegattensplitting policy accounting for around 25% of the decline.
• Cultural influences, including traditional gender roles, also contribute, with women from East Germany experiencing smaller income reductions than those from West Germany.
• The research highlights that this trend is not unique to Germany, with similar patterns observed in other European countries like the Netherlands, Ireland, and Switzerland.