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Firms bear influence over setting wages and sorting workers, yet firms are largely omitted from research on parental wage gaps in the United States.<\/jats:p><\/jats:sec><jats:sec><jats:title>Method<\/jats:title><jats:p>We draw on novel employer\u2013employee matched data on 74,086 hourly service\u2010sector workers to decompose parental wage gaps into their within\u2010 and between\u2010firm components. We leverage uniquely rich data on compensating differentials to test if they sort parents across firms.<\/jats:p><\/jats:sec><jats:sec><jats:title>Results<\/jats:title><jats:p>We found that mothers are overrepresented in lower\u2010wage firms, accounting for 68% of mothers' wage gap. In contrast, fathers' wage gap accrued within firms. We found limited evidence that compensating differentials, even schedule quality, produce parental wage gaps.<\/jats:p><\/jats:sec><jats:sec><jats:title>Conclusion<\/jats:title><jats:p>We show for the first time that in a major US industry, mothers are segregated in low\u2010paying firms compared to women without children, while fathers are paid more than men without children in the same firms. Our findings largely do not tell a story of parents voluntarily choosing between wages and job quality, instead calling for more research on firm practices.<\/jats:p><\/jats:sec>","DOI":"10.1111\/jomf.13041","type":"journal-article","created":{"date-parts":[[2024,10,21]],"date-time":"2024-10-21T06:19:40Z","timestamp":1729491580000},"page":"590-616","update-policy":"https:\/\/doi.org\/10.1002\/crossmark_policy","source":"Crossref","is-referenced-by-count":2,"title":["Between\u2010firm sorting and parenthood wage gaps in the US service sector"],"prefix":"10.1111","volume":"87","author":[{"ORCID":"https:\/\/orcid.org\/0000-0001-7662-1848","authenticated-orcid":false,"given":"Charlotte","family":"O'Herron","sequence":"first","affiliation":[{"name":"Harvard University  Cambridge Massachusetts USA"}],"role":[{"role":"author","vocabulary":"crossref"}]},{"ORCID":"https:\/\/orcid.org\/0000-0001-6786-0302","authenticated-orcid":false,"given":"Daniel","family":"Schneider","sequence":"additional","affiliation":[{"name":"Harvard University  Cambridge Massachusetts USA"}],"role":[{"role":"author","vocabulary":"crossref"}]},{"ORCID":"https:\/\/orcid.org\/0000-0001-8379-8393","authenticated-orcid":false,"given":"Kristen","family":"Harknett","sequence":"additional","affiliation":[{"name":"University of California San Francisco  San Francisco California USA"}],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"311","published-online":{"date-parts":[[2024,10,20]]},"reference":[{"key":"e_1_2_7_2_1","doi-asserted-by":"publisher","DOI":"10.2307\/2075528"},{"key":"e_1_2_7_3_1","doi-asserted-by":"publisher","DOI":"10.1086\/684851"},{"key":"e_1_2_7_4_1","doi-asserted-by":"crossref","unstructured":"Arellano\u2010Bover J. &San S.(2020).The role of firms in the assimilation of immigrants(SSRN Scholarly Paper ID 3594778). 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