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Intertemporal substitution in maternal labor supply: Evidence using state school entrance age laws

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  • Barua, Rashmi

Abstract

Using exogenous variation in maternal net earning opportunities, generated through school entrance age of children, I study intertemporal labor supply behavior among married mothers. Employing data from the 1980 US Census and the NLSY, I estimate the effect of a one year delay in school attendance on long run maternal labor supply. IV estimates imply that having a 5year old enrolled in school increases labor supply for married women. Further, using a sample of 7 to 10year olds from the NLSY, I investigate persistence in employment outcomes for a married mother whose child delayed school entry. Results point towards long run intertemporal substitution in labor supply. Rough calculations yield an uncompensated wage elasticity of 0.37 and an intertemporal elasticity of substitution equal to 0.73.

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  • Barua, Rashmi, 2014. "Intertemporal substitution in maternal labor supply: Evidence using state school entrance age laws," Labour Economics, Elsevier, vol. 31(C), pages 129-140.
    • Handle: RePEc:eee:labeco:v:31:y:2014:i:c:p:129-140
    DOI: 10.1016/j.labeco.2014.07.002
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    2. Francesca Carta & Lucia Rizzica, 2015. "Female employment and pre-kindergarten: on the uninteded effects of an Italian reform," Temi di discussione (Economic working papers) 1030, Bank of Italy, Economic Research and International Relations Area.
    3. Graf, Nikolaus & Köppl-Turyna, Monika, 2020. "Längere Öffnungszeiten in der Kinderbetreuung: Effizienzpotenziale nutzen, Leistungen verbessern!," Policy Notes 44, EcoAustria – Institute for Economic Research.
    4. Huang, Cheng & Zhang, Shiying & Zhao, Qingguo, 2020. "The early bird catches the worm? School entry cutoff and the timing of births," Journal of Development Economics, Elsevier, vol. 143(C).
    5. Fiaschi, Davide & Tealdi, Cristina, 2023. "The attachment of adult women to the Italian labour market in the shadow of COVID-19," Labour Economics, Elsevier, vol. 83(C).
    6. Samuel Berlinski & Sebastian Galiani & Patrick J. McEwan, 2011. "Preschool and Maternal Labor Market Outcomes: Evidence from a Regression Discontinuity Design," Economic Development and Cultural Change, University of Chicago Press, vol. 59(2), pages 313-344.
    7. Pihl, Ariel Marek, 2022. "Head Start and mothers’ work: Free child care or something more?," Labour Economics, Elsevier, vol. 75(C).
    8. Selina Gangl & Martin Huber, 2021. "From homemakers to breadwinners? How mandatory kindergarten affects maternal labour market outcomes," Papers 2111.14524, arXiv.org, revised Mar 2022.
    9. Gangl, Selina & Huber, Martin, 2021. "From homemakers to breadwinners? How mandatory kindergarten affects maternal labour market attachment," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203636, Verein für Socialpolitik / German Economic Association, revised 2021.
    10. Landais, Camille & Kleven, Henrik & Posch, Johanna & Steinhauer, Andreas & Zweimüller, Josef, 2020. "Do Family Policies Reduce Gender Inequality? Evidence from 60 Years of Policy Experimentation," CEPR Discussion Papers 15437, C.E.P.R. Discussion Papers.
    11. Berthelon, Matias & Kruger, Diana & Lauer, Catalina & Tiberti, Luca & Zamora, Carlos, 2020. "Longer School Schedules, Childcare and the Quality of Mothers’ Employment: Evidence from School Reform in Chile," GLO Discussion Paper Series 525, Global Labor Organization (GLO).
    12. Eckhoff Andresen, Martin & Havnes, Tarjei, 2019. "Child care, parental labor supply and tax revenue," Labour Economics, Elsevier, vol. 61(C).
    13. Francesca Carta, 2019. "Female labour supply in Italy: the role of parental leave and child care policies," Questioni di Economia e Finanza (Occasional Papers) 539, Bank of Italy, Economic Research and International Relations Area.
    14. Francesca Carta & Lucia Rizzica, 2016. "Female employment and pre-kindergarten: On the unintended effects of an Italian reformAbstract: We theoretically show that when mothers need to buy childcare services not only if they work but also if," Working Papers 091, "Carlo F. Dondena" Centre for Research on Social Dynamics (DONDENA), Università Commerciale Luigi Bocconi.
    15. Eiji Yamamura & Yoshiro Tsustsui, 2021. "The impact of closing schools on working from home during the COVID-19 pandemic: evidence using panel data from Japan," Review of Economics of the Household, Springer, vol. 19(1), pages 41-60, March.
    16. Carta, Francesca & Rizzica, Lucia, 2018. "Early kindergarten, maternal labor supply and children's outcomes: Evidence from Italy," Journal of Public Economics, Elsevier, vol. 158(C), pages 79-102.
    17. Matias Berthelon & Diana Kruger & Melanie Oyarzún, 2023. "School schedules and mothers’ employment: evidence from an education reform," Review of Economics of the Household, Springer, vol. 21(1), pages 131-171, March.

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    More about this item

    Keywords

    Intertemporal substitution; School entry age; Maternal labor supply;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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