Do mothers’ occupation-specific skills impact children’s developmental processes?

This study examines whether mothers’ occupation-specific skills influence children’s development. I argue that while education is a valuable proxy for parental skills, it fails to capture an important dimension of human capital: the skills parents acquire through their occupational experiences. Parents enhance their human capital through on-the-job learning, with occupation-specific expertise becoming integral to their skill sets. Combining longitudinal family data (NLSY79-CYA) and the O*NET dataset, I employ two-way fixed effects, inverse probability weighting, and asymmetric fixed effects models. I exploit changes in the required skill levels of mothers’ occupations following job switches. Results indicate that when mothers transition to roles requiring higher levels of mathematical skills, their children’s mathematical abilities improve. Similar trends are observed for literacy skills, although the effects are less consistently robust. Additionally, longer maternal job tenure amplifies these effects, which are primarily driven by increases in skill requirements rather than decreases. Furthermore, children in high-SES families benefit more from increases in their mothers’ occupational skill requirements than children in low-SES families. • Parental education alone inadequately represents parents’ human capital. • Parents develop skills through on-the-job learning and experience. • This study integrates NLSY79-CYA family data with the O*NET dataset. • Mothers’ occupation-specific required skills influence children’s skill development. • High-SES children benefit more from increases in their mothers’ occupational skill requirements than low-SES children.