Raising Female Employment : Reflections and Policy Tools
AbstractWhile 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 labor supply with market frictions and heterogenous home production where the effects of these policies can be coherently analyzed. We show that subsidies to labor market entry increase women’s entrance in the labor market, but they also increase exits from the labor 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 InfoPaper provided by Sciences Po in its series Sciences Po publications with number info:hdl:2441/8942.
Date of creation: Apr 2004
Date of revision:
Publication status: Published in Journal of the European Economic Association (2004) v.2 , p.320-330
Other versions of this item:
- Pietro Garibaldi & Etienne Wasmer, 2004. "Raising Female Employment: Reflections and Policy Tools," Journal of the European Economic Association, MIT Press, vol. 2(2-3), pages 320-330, 04/05.
- Garibaldi, Pietro & Wasmer, Etienne, 2003. "Raising Female Employment: Reflexions and Policy Tools," IZA Discussion Papers 951, Institute for the Study of Labor (IZA).
- Pietro Garibaldi & Etienne Wasmer, 2003. "Raising Female Employment Reflections and Policy Tools," Working Papers 250, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- J0 - Labor and Demographic Economics - - General
- J2 - Labor and Demographic Economics - - Demand and Supply of Labor
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