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.
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hips: knowledge:wharton.upenn.edulpodcasthartor-business-dlly-podcastor-working-moms-entrepreneurship-beats-he-motherhood-penaly/ 1/61013728, 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
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