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Beyond the “Comforts” of work from home: Child health and the female wage penalty

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  • Kouki, Amairisa

Abstract

Using data on American women and the health status of their children, this paper provides estimates of the effect of remote work on female wages. A temporary child health shock, which does not affect a woman's labor market outcomes beyond inducing her to work at home, is used as an instrument. Instrumental variable estimates indicate a substantial wage penalty that is more likely attributed to women's choices or assignments of less promotable job tasks when working from home. The findings are valuable in assessing the costs associated with remote flexibility, especially when children are required to stay at home during episodes of illness.

Suggested Citation

  • Kouki, Amairisa, 2023. "Beyond the “Comforts” of work from home: Child health and the female wage penalty," European Economic Review, Elsevier, vol. 157(C).
    • Handle: RePEc:eee:eecrev:v:157:y:2023:i:c:s0014292123001563
    DOI: 10.1016/j.euroecorev.2023.104527
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    More about this item

    Keywords

    Female wages; Remote work; Fertility; Child health; Instrumental variables;
    All these keywords.

    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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