Rising Inequality in Mothers' Employment Statuses: The Role of Intergenerational Transmission

Abstract

Abstract During the late twentieth century, U.S. mothers' propensities to hold full-time jobs became increasingly unequal across the distribution of socioeconomic status (SES). Consequently, daughters in high-SES households became more likely to be raised by working mothers than daughters in low-SES households. To what extent did this unequal exposure further shape maternal employment inequality in the twenty-first century—when these daughters had grown into adults and begun to raise their own children? Leveraging the genealogical structure of the Panel Study of Income Dynamics, this article estimates intergenerational employment coefficients on a sample of late twentieth century mothers and their daughters. It documents a much stronger intergenerational relationship in high-SES families than in low-SES families. Supplementary analyses reveal that being raised by a working mother significantly reduces the motherhood employment penalty among high-SES women but not among low-SES women. Unequal rates of mother-daughter employment transmission by SES can account for 36% of growing inequality in maternal employment across SES groups, observed in the Current Population Survey, between 1999 and 2016. These findings indicate that family-level transmission processes magnify the effects of structural forces on maternal employment inequality.