Men, Women, and Capital: Estimating Substitution Patterns by Using a Size- and Gender-Dependent Childcare Policy in Chile
Diego Escobar,
Jeanne Lafortune and
José Tessada
Journal of Labor Economics, 2026, vol. 44, issue 4, 1383 - 1434
Abstract:
We test whether men and women have the same degree of complementarity to capital by using a policy obligating firms to fund childcare for their female employees if they employ more than 19 women. This policy generated bunching at the threshold, particularly when more enforced, in male-intensive industrial sectors, and in larger firms. Firms that employ 19 women have a higher capital-to-men ratio than firms just above the threshold. Our framework suggests that the distortion in this ratio is consistent with women being less complementary to capital than men, which is confirmed by our calibrated model.
Date: 2026
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