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Effect of a Family Policy Reform on Immigrants' Labour Supply and Earnings


  • Ghazala Naz


An important feature of Scandinavian welfare states is the transfer of resources to families with children. Long parental leave and provision of high-quality subsidized day care are important policies in this regard. This paper evaluates the impact of a recent Norwegian family policy reform on the labour supply of native and immigrant women in Norway. The reform provides cash benefits to families with 1-3-year-old children who do not utilize state-subsidized day care centres. We find that the effect of the reform on labour force participation of women is fairly modest. However, given participation, earnings of natives and immigrants fell after the cash-benefit reform. Specifically, earnings of highly educated non-Western immigrants fell by more than those of natives. Copyright 2010 CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd.

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  • Ghazala Naz, 2010. "Effect of a Family Policy Reform on Immigrants' Labour Supply and Earnings," LABOUR, CEIS, vol. 24(1), pages 74-92, March.
  • Handle: RePEc:bla:labour:v:24:y:2010:i:1:p:74-92

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    References listed on IDEAS

    1. Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-291, March.
    2. Ichniowski, Casey & Shaw, Kathryn & Prennushi, Giovanna, 1997. "The Effects of Human Resource Management Practices on Productivity: A Study of Steel Finishing Lines," American Economic Review, American Economic Association, vol. 87(3), pages 291-313, June.
    3. Stefano DellaVigna & M. Daniele Paserman, 2005. "Job Search and Impatience," Journal of Labor Economics, University of Chicago Press, vol. 23(3), pages 527-588, July.
    4. Lalith Munasinghe & Nachum Sicherman, 2000. "Why Do Dancers Smoke? Time Preference, Occupational Choice, and Wage Growth," NBER Working Papers 7542, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Chiara Comolli & Fabrizio Bernardi, 2015. "The causal effect of the great recession on childlessness of white American women," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-24, December.

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