This paper examines the impact of children on gender inequality in earnings and labor market outcomes in Denmark from 1980 to 2013. Using administrative data and an event study approach, the authors find that the arrival of children creates a significant gender gap in earnings, with women experiencing a 20% penalty in the long run. This penalty is driven by labor force participation, hours of work, and wage rates. The study also reveals that these "child penalties" have increased over time, from about 40% in 1980 to about 80% in 2013. The authors attribute this increase to the intergenerational transmission of child penalties, which are strongly related to the labor supply history of the maternal grandparents. The findings suggest that the persistence of gender inequality in earnings is largely due to the effects of children on women's career trajectories, highlighting the ongoing challenges women face in balancing career and family.This paper examines the impact of children on gender inequality in earnings and labor market outcomes in Denmark from 1980 to 2013. Using administrative data and an event study approach, the authors find that the arrival of children creates a significant gender gap in earnings, with women experiencing a 20% penalty in the long run. This penalty is driven by labor force participation, hours of work, and wage rates. The study also reveals that these "child penalties" have increased over time, from about 40% in 1980 to about 80% in 2013. The authors attribute this increase to the intergenerational transmission of child penalties, which are strongly related to the labor supply history of the maternal grandparents. The findings suggest that the persistence of gender inequality in earnings is largely due to the effects of children on women's career trajectories, highlighting the ongoing challenges women face in balancing career and family.