Having It All? Employment, Earnings, and Children
Tobias Laun and
Johanna Wallenius
Scandinavian Journal of Economics, 2021, vol. 123, issue 1, 353-381
Abstract:
We study the effect of family policies on female employment, fertility, and the gender wage gap. We develop a life‐cycle model of heterogeneous households featuring endogenous labor supply, human capital accumulation, fertility, and home production. Our results suggest that human capital accumulation is important in accounting for the widening of the gender wage gap following children. We find that, in aggregate, childcare subsidies promote maternal employment and fertility, although the effects are heterogeneous across couples. A subsidy on home goods increases female employment, but primarily later in life. Thus, it does not dampen the widening of the gender gap.
Date: 2021
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https://doi.org/10.1111/sjoe.12346
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Working Paper: Having It All? Employment, Earnings and Children (2017) 
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Persistent link: https://EconPapers.repec.org/RePEc:bla:scandj:v:123:y:2021:i:1:p:353-381
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