Occupational Heterogeneity of Child Penalty in the United States
Author:
Posted: 29 January 2026
Abstract
I investigate how parenthood reshapes employment patterns across occupations and how this occupational heterogeneity contributes to earning disparities. Using a novel rotating panel approach to estimating child penalties, I document that both men and women change occupations. The well-established null effect of fatherhood hides that men's employment rate decreases in some occupations like finance and increases in others like construction. Women leave most occupations but select into occupations with part-time options. These occupational changes explain 40% of the income penalty for women, most of the income penalty for men, and most of the wage penalty for both genders.