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1013728, 2:33AM For Working Moms, Entrepreneurship Beats the ‘Motherhood Penally - Knowladge at Wharton KNOWLEDGE « WHARTON A business journal from the Wharton School ofthe University of Pennsylvania For Working Moms, Entrepreneurship Beats the ‘Motherhood Penalty’ May 8, 2023 + 11 min listen ‘Anew study of professional working mothers in Sweden finds that many turn to entrepreneurship after encountering the “motherhood penalty” at work. ‘Wharton's Tiantian Yang explains why her latest research challenges long- held assumptions about hard-working moms. ENTREPRENEURSHIP DIVERSITY, EQUITY, & INCLUSION SUBSCRIBE NOW Featured Faculty Hosted by Tiantian Yang Dan Loney Written By Angle Basiouny hips: knowledge:wharton.upenn.edulpodcasthartor-business-dlly-podcastor-working-moms-entrepreneurship-beats-he-motherhood-penaly/ 1/6 1013728, 2:33AM For Working Moms, Entrepreneurship Beats the ‘Motherhood Penally - Knowladge at Wharton rofessional women are more likely to launch their own Pp businesses after becoming mothers because they experience discriminatory wage reduction known as the motherhood penalty, according to a new study from Wharton management professor Tiantian Yang. Her co-authored paper, which examines the direct relationship between motherhood and entrepreneurship, challenges the narrative that working moms leave their lucrative careers mainly to gain more time with their families. It also shines a spotlight on broader gender inequality in the workplace. “The reason a lot of mothers face motherhood earning penalties is not because they want to cut their work hours or they want to move ‘to occupations that are more flexible. It’s because of employer discrimination, Yang said during an interview with Wharton Business Daily on SiriusXM. Her study, “The Motherhood Wage Penalty and Female Entrepreneurship,’ was published online in Organization Science. The co-authors are Aleksandra (Olenkka) Kacperezyk, strategy and entrepreneurship professor at London Business School, and Lucia Naldi, business administration professor at Jonképing International Business School. ‘The scholars used matched employer/employce data from Sweden that included the entire working population of that country, replete with details on occupation, pay, and child status. They compared mothers and childless women in the same organizations who held the same occupation to determine how many turned to hitps:/knowledge.;wharton.upenn.edulpodcastivhartor-business-

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