Child Penalties, Child Outcomes, and Family Culture

This paper analyzes how the "child penalty" associated with career interruptions for women after becoming a mother is influenced by preferences absorbed during childhood, and how the child penalty, in turn, is related to the quantity and quality (education) of her own children. Using linked administrative data on Israeli parents and children, the analysis shows that mothers who grew up in larger and more traditional families marry men from larger families, and together they have more children. Growing up with more siblings is also associated with a larger child penalty for a mother in earnings and employment, as well as in terms of commuting less and moving to "mother friendly" firms at the expense of higher wage firms. The results also indicate that the child penalty produces two opposing effects on child human capital – a negative impact due to the loss of parental income, and a positive influence of increased maternal time away from work. Overall, the evidence suggests that the family preferences and norms absorbed during childhood significantly influence a woman's choices of spouse, fertility, and child penalty later in life – but with little overall impact on her children's high school achievements.