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Abstract

For the first time since American women joined the labor force in the 1970s, the number of working mothers has decreased. Dubbed the ‘opt-out revolution’ by The New York Times, the so-called exodus has left companies confused, social conservatives jubilant and feminists incensed. This article explores the reasons for women's workforce departure and argues that it is a predictable result of organizations' failure to understand differences between male and female workers, an ignorance that leads to flawed incentive structures which eventually drive women out of the workplace. I discuss three of the most problematic assumptions made by organizations: (1) men and women are motivated by the same things; (2) managers determine promotion and pay on merit; and (3) implementing policies designed for women, such as family–friendly benefits, will solve retention problems. Copyright © 2006 John Wiley & Sons, Ltd.