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Raising Female Employment: Reflexions and Policy Tools

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Author Info

  • Garibaldi, Pietro

    ()
    (University of Turin)

  • Wasmer, Etienne

    ()
    (Sciences Po, Paris)

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: 17 pages
Date of creation: Dec 2003
Date of revision:
Publication status: published in: Journal of the European Economic Association, 2004, 2 (2-3), 320-330
Handle: RePEc:iza:izadps:dp951

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Related research

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

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Cited by:
  1. Michaud, Pierre-Carl & Tatsiramos, Konstantinos, 2005. "Employment Dynamics of Married Women in Europe," IZA Discussion Papers 1706, Institute for the Study of Labor (IZA).
  2. 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).
  3. Kaiser, Lutz C., 2006. "Female Labor Market Transitions in Europe," IZA Discussion Papers 2115, Institute for the Study of Labor (IZA).
  4. Booth, Alison L. & Coles, Melvyn, 2005. "Increasing Returns to Education and the Skills Under-Investment Trap," IZA Discussion Papers 1657, Institute for the Study of Labor (IZA).

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