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Raising Female Employment Reflections and Policy Tools

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Author Info
Pietro Garibaldi
Etienne Wasmer

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Abstract

While there is consensus on the need to raise the time spent in the market by European women, it is not clear how these goals should be achieved. Tax wedges, assistance in the job search process, and part-time jobs are policy instruments that are widely debated in policy circles. The paper presents a simple model of labour supply with market frictions and heterogenous home production where the effects of these policies can be coherently analysed. We show that subsidies to labour market entry increase women's entrance in the labour market, but they also increase exits from the labour market, with ambiguous effect on employment. Subsidies to part-time do increase employment, but they have ambiguous effects on hours and market production. Finally, reductions in taxes on market activities that are highly substitutable with home production have unambiguous positive effects on market employment and production.

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Paper provided by IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University in its series Working Papers with number 250.

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Date of creation: 2003
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Handle: RePEc:igi:igierp:250

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  1. Alison Booth & Melvyn Coles, 2005. "Increasing Returns to Education and the Skills Under-Investment Trap," IZA Discussion Papers 1657, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Lutz C. Kaiser, 2006. "Female Labor Market Transitions in Europe," IZA Discussion Papers 2115, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Pierre-Carl Michaud & Konstantinos Tatsiramos, 2008. "Fertility and Female Employment Dynamics in Europe: The Effect of Using Alternative Econometric Modeling Assumptions," Working Papers 643, RAND Corporation Publications Department. [Downloadable!]
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  4. Pierre-Carl Michaud & Konstantinos Tatsiramos, 2005. "Employment Dynamics of Married Women in Europe," IZA Discussion Papers 1706, Institute for the Study of Labor (IZA). [Downloadable!]
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