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The impact of cash-benefit reform on parents’ labour force participation

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  • Ghazala Naz

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    Abstract

    This paper evaluates the impact of a recent Norwegian family-policy reform. The reform provides benefits of up to NOK 3,000 (approximately € 400) per month to families with one- to three-year-old children, who do not utilize state-subsidized day-care centres. We investigate the reform’s effect on parents’ labour force participation. We find that, on average, the reform reduced women’s labour force participation and increased the specialization of work between couples. We find that the effect of the reform depends on women’s schooling. Specifically, the labour force participation of highly educated mothers fell by more than that of mothers with less education. Copyright Springer-Verlag 2004

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    File URL: http://hdl.handle.net/10.1007/s00148-003-0157-y
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    Bibliographic Info

    Article provided by Springer in its journal Population Economics.

    Volume (Year): 17 (2004)
    Issue (Month): 2 (06)
    Pages: 369-383

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    Handle: RePEc:spr:jopoec:v:17:y:2004:i:2:p:369-383

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    Related research

    Keywords: Public policy; cash benefits; specialization; I38; J16; J22;

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    References

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    1. Blau, David M & Robins, Philip K, 1988. "Child-Care Costs and Family Labor Supply," The Review of Economics and Statistics, MIT Press, vol. 70(3), pages 374-81, August.
    2. Arleen Leibowitz & Jacob Alex Klerman & Linda J. Waite, 1992. "Employment of New Mothers and Child Care Choice: Differences by Children's Age," Journal of Human Resources, University of Wisconsin Press, vol. 27(1), pages 112-133.
    3. Sanders Korenman & David Neumark, 1992. "Marriage, Motherhood, and Wages," Journal of Human Resources, University of Wisconsin Press, vol. 27(2), pages 233-255.
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    8. Bergstrom, Ted & Blomquist, Soren, 1996. "The political economy of subsidized day care," European Journal of Political Economy, Elsevier, vol. 12(3), pages 443-457, November.
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    12. Henry Ohlsson & Michael Lundholm, 1998. "Wages, taxes and publicly provided day care," Journal of Population Economics, Springer, vol. 11(2), pages 185-204.
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    14. Siv Gustafsson & Frank Stafford, 1992. "Child Care Subsidies and Labor Supply in Sweden," Journal of Human Resources, University of Wisconsin Press, vol. 27(1), pages 204-230.
    15. ûivind Anti Nilsen & Alf Erling Risa & Alf Torstensen, 2000. "Transitions from employment among young Norwegian workers," Journal of Population Economics, Springer, vol. 13(1), pages 21-34.
    16. Blomquist, Suren & Christiansen, Vidar, 1995. " Public Provision of Private Goods as a Redistributive Device in an Optimum Income Tax Model," Scandinavian Journal of Economics, Wiley Blackwell, vol. 97(4), pages 547-67, December.
    17. Alice Nakamura & Masao Nakamura, 1994. "Predicting Female Labor Supply: Effects of Children and Recent Work Experience," Journal of Human Resources, University of Wisconsin Press, vol. 29(2), pages 304-327.
    18. Lisa M. Powell, 1997. "The Impact of Child Care Cost on the Labour Supply of Married Mothers: Evidence from Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 30(3), pages 577-94, August.
    19. Maria Chiuri, 2000. "Quality and Demand of Child Care and Female Labour Supply in Italy," LABOUR, CEIS, vol. 14(1), pages 97-118, 03.
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    Cited by:
    1. Ermisch, John & Pronzato, Chiara, 2010. "Causal effects of parents' education on children's education," ISER Working Paper Series 2010-16, Institute for Social and Economic Research.
    2. Tom Kornstad & Thor Olav Thoresen, 2006. "Effects of Family Policy Reforms in Norway. Results from a Joint Labor Supply and Child Care Choice Microsimulation Analysis," Discussion Papers 450, Research Department of Statistics Norway.
    3. Leibbrandt, Murray & Lilenstein, Kezia & Shenker, Callie & Woolard, Ingrid, 2013. "The influence of social transfers on labour supply: A South African and international review," SALDRU Working Papers 112, Southern Africa Labour and Development Research Unit, University of Cape Town.
    4. Drange, Nina & Rege, Mari, 2013. "Trapped at home: The effect of mothers' temporary labor market exits on their subsequent work career," Labour Economics, Elsevier, vol. 24(C), pages 125-136.
    5. Sánchez-Mangas, Rocio & Sánchez-Marcos, Virginia, 2008. "Balancing family and work: The effect of cash benefits for working mothers," Labour Economics, Elsevier, vol. 15(6), pages 1127-1142, December.
    6. Ragni Hege Kitterød & Marit Rønsen, 2013. "Does parenthood imply less specialization than before? Tales from the Norwegian time use surveys 1980-2010," Discussion Papers 757, Research Department of Statistics Norway.
    7. Rocio Sánchez-Mangas & Virginia Sánchez-Marcos, . "Reconciling female labor participation and motherhood: the effect of benefits for working mothers," Studies on the Spanish Economy 195, FEDEA.

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