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Assortative Marriage and the Effects of Government Homecare Provision Programs on Gender Wage and Participation Inequality

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Author Info
Bjerk, David
Han, Seungjin

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Abstract

We develop a model of the labor market where firms incur an adjustment cost when one of their workers quits, and males and females form households assortatively by skill. We show how this environment can lead to an economy where females earn less and drop out more frequently than equally skilled males in equilibrium, even when males and females constitute ex-ante identical populations. We then examine how different government homecare subsidy schemes may affect such gender inequality in the labor market. We show that the effect of government homecare subsidy schemes on gender inequality depends crucially on the form in which the subsidy is given and to whom it is allocated.

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File URL: http://socserv.mcmaster.ca/han/research/gender5JPubE.pdf
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Publisher Info
Paper provided by Microeconomics.ca Website in its series Micro Theory Working Papers with number bjerk-05-11-21-10-55-45.

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Length: 20 pages
Date of creation: 21 Nov 2005
Date of revision: 06 Sep 2006
Handle: RePEc:ubc:pmicro:bjerk-05-11-21-10-55-45

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Related research
Keywords: Gender Inequality; Discrimination; Subsidized Childcare;

Other versions of this item:

Find related papers by JEL classification:
H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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