Care Penalty on Labor Market Outcomes in Chile: A Longitudinal Analysis by Gender

Bárbara Flores Arenas () and Francisca Ortiz Ruiz ()
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Bárbara Flores Arenas: Universidad Mayor
Francisca Ortiz Ruiz: Millennium Institute for Care Research (MICARE)

Journal of Family and Economic Issues, 2025, vol. 46, issue 2, No 7, 426 pages

Abstract: Abstract We study the influence of spending time caring for older people, sick or disabled family members on labor market outcomes, by sex. We test the hypothesis that a care penalty in the labor market is more substantial for women than men. We use the Chilean Longitudinal Social Survey (2016–2021) to estimate a labor supply model with individual fixed effects on a sample of urban adults. Our estimations suggest a care penalty faced by women on participation and employability, a result which is related to access and not to labor conditions. These access limitations are not present on men’s estimations. Once caregiving responsibilities are managed—whether through household members or external arrangements—our analysis does not find a statistically significant relationship with holding a formal contract, weekly work hours, or wages. Public policies to increase the female caregiver’s participation are proposed.

Keywords: Gender inequality; Labor market outcomes; Caregiving; Care penalty (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10834-025-10046-8

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