Having it all, for all: Child-care subsidies and income distribution reconciled

Francesca Barigozzi, Helmuth Cremer and Kerstin Roeder

Journal of Economic Behavior & Organization, 2020, vol. 176, issue C, 188-211

Abstract: We study the design of child-care policies when redistribution matters. Traditional mothers provide some informal child care, whereas career mothers purchase full time formal care. The sorting of women across career paths is endogenous and shaped by a social norm about gender roles in the family. Via this social norm traditional mothers’ informal child care imposes an externality on career mothers, so that the market outcome is inefficient. Informal care is too large and the group of career mothers is too small so that inefficiency and gender inequality go hand in hand.

Keywords: Social norms; Child care and women’s career choices; Child care subsidies; Redistribution (search for similar items in EconPapers)
JEL-codes: D13 H23 J16 J22 (search for similar items in EconPapers)
Date: 2020
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Related works:
Working Paper: Having it all, for all: child-care subsidies and income distribution reconciled (2020)
Working Paper: Having it all, for all: child-care subsidies and income distribution reconciled (2019)
Working Paper: Having It All, for All: Child-Care Subsidies and Income Distribution Reconciled (2019)
Working Paper: Having it all, for all: child-care subsidies and income distribution reconciled (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:176:y:2020:i:c:p:188-211

DOI: 10.1016/j.jebo.2020.05.007

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