The birth of a first child has a profound and lasting impact on women’s employment in Greece, according to a new report by the International Monetary Fund (IMF). The study shines a spotlight on what economists refer to as the «child penalty» — the long-term professional setback women face after becoming mothers.
Drawing on data from the international Child Penalty Atlas, the report finds that Greek women experience a sharp and sustained drop in employment immediately following the birth of their first child. In contrast, men’s employment rates remain virtually unchanged during the same period. The IMF notes that this penalty is not short-lived: it persists over time, contributing to a permanent gender gap in the labor market. The consequences are wide-ranging, affecting not only individual women’s income and career prospects but also the broader economy.
Among European countries, Greece stands out as one of the places where having a child is particularly detrimental to a woman’s professional trajectory. A major factor behind this trend is the limited access to affordable, quality childcare. More than 70% of children under the age of three in Greece are not enrolled in any form of formal early education or care — a figure significantly above the Eurozone average. This childcare gap makes it extremely difficult for mothers to return to work after childbirth, leading many to withdraw from the labor force altogether.
The IMF also points to structural issues within Greece’s tax and welfare systems, which fail to support dual-income households effectively. In addition, deep-seated cultural attitudes still tend to view caregiving as primarily a woman’s responsibility. Parental leave policies, especially for fathers and the self-employed, are limited in both duration and flexibility, further reinforcing the unequal distribution of care work within families.
To reverse these trends, the IMF recommends a series of targeted reforms aimed at removing barriers to women’s employment. These include expanding early childhood care facilities, extending and redesigning parental leave to better include fathers, improving tax incentives for secondary earners (who are typically women), and offering tailored benefits linked to workforce reentry and educational opportunities.
The report concludes that if Greece were to effectively address these childcare and structural challenges, it could increase national employment by around 3%, primarily by enabling more women to enter and remain in the workforce.
