The purpose of this study was to investigate the effects of maternal employment on children's outcomes and the social climate within divorced (N = 38) and intact (N = 38) middle class families having elementary school children. Parental perceptions of specific family environment characteristics (Moos & Moos, 1986) and children's behavioral conduct (Achenbach & Edelbrock, 1983) were assessed, Children's outcome characteristics were measured using the Harter Self Perception Profile For Children(Harter, 1985). These data were analyzed using a multiple regression model. As expected, signficantly more mothers were employed in the divorced group. In divorced homes, maternal employment was significantly associated with increased active recreational orientation within the family enviroment and increased self-esteem in children. The data suggest that when mothers are employed in families who have experienced parental divorce, there is moree of an inclination to participate in social and recreational activities together. Children within this category expressed elevated global evaluations of self-worth. Interestingly, a significant negative relationship was observed between maternal employment and duration of visitation with the child by the noncustodial parent. Maternal employment in intact families-was found to be associated with decreased emphasis on independence within the family environment and increased athletic self-efficacy in children. No significant differences were observed between dual-wage and single-wage families in terms of parental reports of children's behavioral profiles, regardless of family configuration. This research supports the contention that the relationship between recent societal changes and children's outcomes are mediated by specific family process variables.