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Raising Female Employment : Reflections and Policy Tools

Author

Listed:
  • Pietro Garibaldi

    (Collegio Carlo Alberto)

  • Etienne Wasmer

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 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.

Suggested Citation

  • Pietro Garibaldi & Etienne Wasmer, 2004. "Raising Female Employment : Reflections and Policy Tools," Sciences Po publications info:hdl:2441/8942, Sciences Po.
    • Handle: RePEc:spo:wpmain:info:hdl:2441/8942
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    References listed on IDEAS

    as
    1. Richard B. Freeman & Ronald Schettkat, 2002. "Marketization of Production and the US-Europe Employment Gap," NBER Working Papers 8797, National Bureau of Economic Research, Inc.
    2. Garibaldi, Pietro & Wasmer, Etienne, 2001. "Labor Market Flows and Equilibrium Search Unemployment," IZA Discussion Papers 406, Institute of Labor Economics (IZA).
    3. Steven J. Davis & Magnus Henrekson, 2004. "Tax Effects on Work Activity, Industry Mix and Shadow Economy Size: Evidence from Rich-Country Comparisons," NBER Working Papers 10509, National Bureau of Economic Research, Inc.
    4. repec:hal:spmain:info:hdl:2441/9081 is not listed on IDEAS
    5. Edward C. Prescott, 2002. "Prosperity and Depression," American Economic Review, American Economic Association, vol. 92(2), pages 1-15, May.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Pierre‐Carl Michaud & Konstantinos Tatsiramos, 2011. "Fertility and female employment dynamics in Europe: the effect of using alternative econometric modeling assumptions," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 26(4), pages 641-668, June.
    2. Kaiser, Lutz C., 2006. "Female Labor Market Transitions in Europe," IZA Discussion Papers 2115, Institute of Labor Economics (IZA).
    3. Till Nikolka, 2016. "Taxation and Female Labor Supply in OECD Countries," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 14(02), pages 55-58, July.
    4. Pierre-Carl Michaud & Konstantinos Tatsiramos, 2005. "Employment Dynamics of Married Women in Europe," Working Papers WR-273, RAND Corporation.
    5. Michaud, Pierre-Carl & Tatsiramos, Konstantinos, 2005. "Employment Dynamics of Married Women in Europe," IZA Discussion Papers 1706, Institute for the Study of Labor (IZA).
    6. Pierre‐Carl Michaud & Konstantinos Tatsiramos, 2011. "Fertility and female employment dynamics in Europe: the effect of using alternative econometric modeling assumptions," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 26(4), pages 641-668, June.
    7. Till Nikolka, 2016. "Taxation and Female Labor Supply in OECD Countries," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 14(2), pages 55-58, 07.
    8. repec:ces:ifodic:v:14:y:2016:i:2:p:19237488 is not listed on IDEAS
    9. Bachmann, Ronald & Bechara, Peggy & Cim, Merve & Kramer, Anica, 2018. "Working women and labour market inequality. Research project for the Wilfried Martens Centre for European Studies: Final report - July 2018," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 195939.
    10. Booth, Alison L. & Coles, Melvyn, 2005. "Increasing Returns to Education and the Skills Under-Investment Trap," IZA Discussion Papers 1657, Institute of Labor Economics (IZA).

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    More about this item

    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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