abstract: 'This study analyses, from the perspective of public economics, the

  Demographic Supplement for Motherhood (CDM) introduced in the Spanish

  Social Security System in 2016. This measure is a supplement added to

  the contributory pension received on retirement, widowhood or disability

  for women who began to receive a pension and who have had two or more

  children. It was introduced with two objectives in mind: to reduce the

  gender gap in pensions and to socially recognise the contribution of

  motherhood to the pension system.

  In this paper, a socioeconomic analysis of this measure is carried out.

  The objectives and issues of this measure are reviewed and its

  distributional effects are analysed. The main source of information are

  data provided by the Ministry of Employment and Social Security, in

  particular the Continuous Sample of Working History (MCVL).

  This is a new approach, with the focus being on public economics rather

  than on legal aspects and use of the MCVL data which, for the first

  time, includes measurements related to the CDM.

  The main objectives of this study are: 1) to estimate the impact that

  the CDM has had on the pension system during the first year of

  application; 2) to analyse the differences in treatment it generates;

  and, 3) to assess its distributional effects on the gender gap in

  pensions and on inequality among women. The study finishes with an

  analysis of other equality policies and puts forward the main

  conclusions reached and proposals for alternative measures.

  The results show that the CDM has affected 58.4\% of new female

  pensioners. The women who have benefitted most from this measure are

  those who receive a widow''s pension (50.9\%), followed by retirement

  pension (39.8\%) and disability pension (9.2\%). Their sociodemographic

  characteristics show that 53.4\% of the supplement is paid to mothers

  with 2 children, while women not receiving CDM tend to have higher

  educational levels than those who are in receipt of the supplement. It

  also shows that self-employed workers tend to have more than one child

  and, therefore, receive the CDM in a greater proportion (62.5\%) than

  employed workers (57.5\%). The estimated cost of this measure amounted

  to 64 million euros in 2016 (approximately 0.05\% of the expenditure on

  contributory pensions), a figure that will increase considerably as the

  supplement is extended to future female pensioners.

  Among the main criticisms highlighted by this study is the difference in

  treatment this measure generates. It purports to be a measure which

  acknowledges the value of motherhood yet it discriminates against many

  mothers by excluding women who were pensioners before 2016 and who are

  the most affected, historically, by more unfavourable family and work

  structures. In addition, other categories excluded are mothers with only

  one child, women who took voluntary retirement, women who receive

  non-contributory pensions and women who do not receive any pension.

  Finally, the measure works against the principle of equality between men

  and women, promulgated by the European Union, because it discriminates

  against fathers.

  Another criticism is that the amount of the CDM increases as the pension

  rises and continues to be paid even when the maximum pension is reached.

  This means that those women with higher pensions benefit more from the

  supplement, which is contrary to measures applied in other countries.

  One suggestion to improve the equality of this measure is that the

  supplement should have an upper limit.

  Furthermore, its effect on reducing inequality has been insignificant.

  As a measure of equality between men and women, the CDM has reduced the

  gender gap between new pensioners (2.2\%) but its effect on the whole

  system is very poor (0.22\%). The pension gap between men and women in

  Spain is still very wide at a rate of 29.3\% and much more work needs to

  be done to reduce this gap.

  Finally, a pension system that gives women greater rights for raising

  children can reinforce traditional roles, discouraging mothers from

  entering the formal labour market and fathers from taking a break from

  their professional careers. This is why these measures are being

  questioned by the Court of Justice of the European Union in terms of

  equal treatment between mothers and fathers.

  The CDM does not address the causes of the problem of gender

  discrimination. It does not address discrimination in employment nor

  does it offer the support required in the workplace for reconciling

  maternity and paternity leave. It is ineffective as a stimulus to change

  labour behaviour of women because its effect is in the long term and it

  is an outdated measure that can be counterproductive.

  In light of these problems, the priority for the government would be to

  establish authentic equality policies which create opportunities for

  both men and women to develop their full potential. 1) labour market

  policies that eliminate gender differences (access to employment, wages

  and job promotion at work), improving the flexibility and the rationale

  of the working day, and 2) reconciliation policies related to family and

  work life, aimed at all workers, that recognise fathers and mothers as

  having co-responsibility for childcare.

  The following measures are proposed to reduce the gender gap in

  pensions:

  a) Replace the current CDM with an additional contribution period per

  child or a fixed amount supplement, in recognition of the period of time

  dedicated to bringing up children.

  If contribution years were added for accessing the pension, the number

  of women with contributory pensions would increase. To avoid the same

  negative aspects already highlighted, it should be implemented in a way

  that covers all kind of pensions and gives greater support to mothers of

  children with disabilities.

  b) Improve non-contributory (universal) pensions, which are those of

  lesser value. This measure would increase the number of women with

  pensions in their own right, thereby reducing the coverage gap and the

  pension gap of the total population (including non-pensioners). This

  extension is vital to stop the pension system being a welfare system

  (low coverage) and being outdated and out of touch (excessively linked

  to family relationships).

  Our further studies will be centred on these proposals with data

  provided by the MCVL in future years.'
affiliation: 'Perez, RG (Corresponding Author), Univ Valencia, Valencia, Spain.

  Granell Perez, Rafael; Salvador Cifre, Concha, Univ Valencia, Valencia, Spain.'
author: Granell Perez, Rafael and Salvador Cifre, Concha
author-email: 'Rafael.Granell@uv.es

  Concha.Salvador@uv.es'
author_list:
- family: Granell Perez
  given: Rafael
- family: Salvador Cifre
  given: Concha
da: '2023-09-28'
doi: 10.7203/CIRIEC-E.98.13570
eissn: 1989-6816
files: []
issn: 0213-8093
journal: CIRIEC-ESPANA REVISTA DE ECONOMIA PUBLICA SOCIAL Y COOPERATIVA
keywords: Social Security; pensions; gender gap; inequality
language: Spanish
month: MAR
number-of-cited-references: '36'
orcid-numbers: Granell, Rafael/0000-0002-9040-2382
pages: 287-322
papis_id: 609189e1796088545e1ea76058fa5346
ref: Granellperez2020demographicsupplemen
researcherid-numbers: Granell, Rafael/K-9704-2017
times-cited: '0'
title: Demographic supplement for motherhood within the framework of equality policies.
  Analysis of objectives, results and outcomes
type: Article
unique-id: WOS:000523362600010
usage-count-last-180-days: '2'
usage-count-since-2013: '8'
volume: '98'
web-of-science-categories: Economics
year: '2020'