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The Family Peer Effect on Mothers' Labor Supply

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  • Cheti Nicoletti
  • Kjell G. Salvanes
  • Emma Tominey

Abstract

The historical rise in female labor force participation has flattened in recent decades, but the proportion of mothers working full-time has increased. We provide the first empirical evidence that the increase in mothers' working hours is amplified through the influence of family peers. For identification, we exploit partially overlapping peer groups. Using Norwegian administrative data, we find positive and statistically significant family peer effects but only on the intensive margin of women's labor supply. These are in part driven by concerns about time allocation from early childhood and concerns about earnings from age five.

Suggested Citation

  • Cheti Nicoletti & Kjell G. Salvanes & Emma Tominey, 2018. "The Family Peer Effect on Mothers' Labor Supply," American Economic Journal: Applied Economics, American Economic Association, vol. 10(3), pages 206-234, July.
  • Handle: RePEc:aea:aejapp:v:10:y:2018:i:3:p:206-34
    Note: DOI: 10.1257/app.20160195
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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