This study examined the relationship between maternal employment status and the sex role concepts, cognitive development and adjustment of 110 nursery school children. It was predicted that maternal employment would be associated with a broadening of the children's sex role concepts. It was further predicted that there would be differential cognitive development depending on the sex of the child. There was evidence that children's sex role concepts were broader if their mothers were employed. The children's perceptions of their mothers were not related to the mother's employment status, but fathers were perceived more negatively by their sons if the mother was employed. Sons of employed mothers had lower IQ scores than either daughters of employed mothers or children with nonemployed mothers. Children with employed mothers received better adjustment ratings from their teachers and were described somewhat more favorably by their parents. Parental data were obtained from 83 sets of parents. There were some significant associations between the children's and parents' measures. The parents' behavior and attitudes varied with the mother's employment status and the sex of the child. (Author/MS)