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Raising Female Employment: Reflexions and Policy Tools

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Author Info

  • Garibaldi, Pietro

    (Bocconi University, IGIER, CEPR and IZA Bonn)

  • Wasmer, Etienne

    () (ECARES, Free University of Brussels, University of Metz, CEPR and IZA Bonn)

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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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 951.

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Length: 14 pages
Date of creation: Dec 2003
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Handle: RePEc:iza:izadps:dp951

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Keywords: employment rate; market frictions; labour market policy;

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References

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  1. Olivetti, Claudia & Petrongolo, Barbara & Garibaldi, Pietro & Pissarides, Christopher & Wasmer, Etienne, 2003. "Women in the Labour Force : How Well is Europe Doing ?," Open Access publications from Sciences Po info:hdl:2441/9081, Sciences Po.
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Cited by:
  1. Michaud, Pierre-Carl & Tatsiramos, Konstantinos, 2008. "Fertility and Female Employment Dynamics in Europe: The Effect of Using Alternative Econometric Modeling Assumptions," IZA Discussion Papers 3853, Institute for the Study of Labor (IZA).
  2. Lutz C. Kaiser, 2006. "Female Labor Market Transitions in Europe," IZA Discussion Papers 2115, Institute for the Study of Labor (IZA).
  3. 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).
  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).

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