Paths to Self-Employment: The Role of Childbirth Timing in Shaping Entrepreneurial Outcomes

This study investigates how the timing of self-employment relative to first childbirth shapes long-term entrepreneurial outcomes among Israeli mothers. Drawing on rich administrative panel data from the Israeli National Insurance Institute (N = 73,141 woman-years), we follow a cohort of women who gave birth for the first time in 2010, tracking their employment trajectories over 15 years (2005–2019). Using random-effect logistic regressions, OLS models, and fixed subgroup analyses, this study compares women who entered self-employment before childbirth with those who did so afterward. The results reveal that postnatal entrants are more likely to operate smaller businesses and exit self-employment earlier, yet often earn higher income from wage employment, compared to their prenatal counterparts. By tracing these outcomes over time, this study demonstrates how key life events, such as childbirth, structure women’s employment paths and contribute to differentiated patterns of labor market participation. Situated in a context of near-universal motherhood and limited public support for working parents, the findings offer insight into the dynamic links between family formation, employment timing, and entrepreneurial sustainability. By adopting a life-course perspective, this study demonstrates how the sequencing of family and employment transitions intersect to shape access to economic resources and entrepreneurial sustainability.