Unpaid care and the gender pay gap: Literature review of recent evidence

Summary of key findings

This review has been carried out in response to the aims of the Fair Work Action Plan ^[1] and associated Evidence Plan ^[2]. It looks to answer the research question: How unpaid caring responsibilities (childcare and social care) influence determinants of the gender pay gap. A near final draft of this review, including key findings, were shared with the Fair Work Oversight Group for awareness in June 2025.

This review was undertaken over a three month period between June to September 2024 with a focus on emerging evidence over the period 2019 to 2024. Due to the time period covered, it should be noted that this is not a comprehensive review of all literature in this area.

A number of evidence gaps were identified during this review. In particular it was found that the evidence base around the impact of gender differences in unpaid social care is limited in comparison to that on unpaid childcare. Evidence gaps were also identified on the impact of care on women’s occupational choices and in relation to the demographic coverage of studies on unpaid childcare.

Findings relating to unpaid childcare

• Multiple studies found that unpaid childcare caused a loss in earnings for providers, with mothers effected more than fathers, and variations in earnings dependant on ethnicity.
• Mothers who provide unpaid childcare often see a reduction in hours, give up working full time after giving birth, or take a break from the labour market due to caring responsibilities.
• Unpaid childcare has an impact on career progression with mothers more likely to work in sectors with high flexibility and low career progression opportunities.

Findings relating to unpaid care

• Unpaid care is shown to result in a loss in earnings for carers, with women facing a larger reduction than men. The level of education achieved by carers also had an impact on earnings loss.
• Carers are likely to reduce working hours, with the level of caring intensity impacting how much hours are reduced.
• Due to the prioritisation of flexible working, carers often have to turn down promotions or work in jobs they are overqualified for.
• A number of studies have found higher caring intensity increases the likelihood of unemployment for carers.

Contribution to the Gender Pay Gap

• The expectation on women to provide care due to gender norms and stereotypes has a negative impact on employment and earnings growth.
• Access to formal and informal care can increase the hours worked and likelihood of employment for carers, for women and mothers in particular.
• High intensity and prolonged caring can lead to the choice to terminate employment for both male and female carers, but women are more likely to leave employment when providing prolonged care even when caring intensity is lower.
• The age at which carers start caring can have impacts on career prospectives and entry into the labour market for young carers.
• Mothers with higher levels of education were more likely to return to work after childbirth and reduced their working hours less.