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The impact of cash-benefit reform on parents’ labour force participation

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  • Ghazala Naz

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Abstract

This paper evaluates the impact of a recent Norwegian family-policy reform. The reform provides benefits of up to NOK 3,000 (approximately € 400) per month to families with one- to three-year-old children, who do not utilize state-subsidized day-care centres. We investigate the reform’s effect on parents’ labour force participation. We find that, on average, the reform reduced women’s labour force participation and increased the specialization of work between couples. We find that the effect of the reform depends on women’s schooling. Specifically, the labour force participation of highly educated mothers fell by more than that of mothers with less education. Copyright Springer-Verlag 2004

Suggested Citation

  • Ghazala Naz, 2004. "The impact of cash-benefit reform on parents’ labour force participation," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(2), pages 369-383, June.
  • Handle: RePEc:spr:jopoec:v:17:y:2004:i:2:p:369-383
    DOI: 10.1007/s00148-003-0157-y
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Asai, Yukiko, 2015. "Parental leave reforms and the employment of new mothers: Quasi-experimental evidence from Japan," Labour Economics, Elsevier, vol. 36(C), pages 72-83.
    2. Tom Kornstad & Thor O. Thoresen, 2006. "Effects of family policy reforms in Norway: results from a joint labour supply and childcare choice microsimulation analysis," Fiscal Studies, Institute for Fiscal Studies, vol. 27(3), pages 339-371, August.
    3. Ragni Hege Kitterød & Marit Rønsen, 2013. "Does parenthood imply less specialization than before? Tales from the Norwegian time use surveys 1980-2010," Discussion Papers 757, Statistics Norway, Research Department.
    4. Julia Bock-Schappelwein & Rainer Eppel & Ulrike Mühlberger, 2009. "Social Policy as a Productive Force," WIFO Monatsberichte (monthly reports), WIFO, vol. 82(11), pages 845-857, November.
    5. Bicakova, Alena & Kaliskova, Klara, 2016. "Career Breaks after Childbirth: The Impact of Family Leave Reforms in the Czech Republic," IZA Discussion Papers 10149, Institute for the Study of Labor (IZA).
    6. repec:lrk:eeaart:35_3_13 is not listed on IDEAS
    7. Ghazala Naz, 2010. "Effect of a Family Policy Reform on Immigrants' Labour Supply and Earnings," LABOUR, CEIS, vol. 24(1), pages 74-92, March.
    8. Drange, Nina & Rege, Mari, 2013. "Trapped at home: The effect of mothers' temporary labor market exits on their subsequent work career," Labour Economics, Elsevier, vol. 24(C), pages 125-136.
    9. Leibbrandt, Murray & Lilenstein, Kezia & Shenker, Callie & Woolard, Ingrid, 2013. "The influence of social transfers on labour supply: A South African and international review," SALDRU Working Papers 112, Southern Africa Labour and Development Research Unit, University of Cape Town.
    10. Denis Beninger & Holger Bonin & Julia Horstschräer & Grit Mühler, 2010. "Wirkungen eines Betreuungsgeldes bei bedarfsgerechtem Ausbau frühkindlicher Kindertagesbetreuung: eine Mikrosimulationsstudie," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 79(3), pages 147-168.
    11. Yuko Kinoshita & Fang Guo, 2015. "What Can Boost Female Labor Force Participation in Asia?," IMF Working Papers 15/56, International Monetary Fund.
    12. Magne Mogstad & Chiara Pronzato, 2012. "Are Lone Mothers Responsive to Policy Changes? Evidence from a Workfare Reform in a Generous Welfare State," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(4), pages 1129-1159, December.
    13. Løken, Katrine V. & Lommerud, Kjell Erik & Reiso, Katrine Holm, 2014. "Single Mothers and their children: Evaluating a work-encouraging welfare reform," Working Papers in Economics 04/14, University of Bergen, Department of Economics.
    14. Gathmann, Christina & Sass, Björn, 2017. "Taxing Childcare: Effects on Childcare Choices, Family Labor Supply and Children," IZA Discussion Papers 10813, Institute for the Study of Labor (IZA).
    15. 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.
    16. John Ermisch & Chiara Pronzato, 2010. "Causal Effects of Parents’ Education on Children’s Education," CHILD Working Papers wp05_10, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
    17. KINOSHITA Yuko & GUO Fang, 2015. "Female Labor Force Participation in Asia: Lessons from the Nordics," Discussion papers 15102, Research Institute of Economy, Trade and Industry (RIETI).
    18. Nina Drange, 2015. "Crowding out Dad? The Effect of a Cash-for-Care Subsidy on Family Time Allocation," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 40, pages 1-2.
    19. repec:wfo:wstudy:41130 is not listed on IDEAS
    20. Reiso, Katrine Holm, 2014. "The Effect of Welfare Reforms on Benefit Substitution," Discussion Paper Series in Economics 22/2014, Norwegian School of Economics, Department of Economics.
    21. Sánchez-Mangas, Rocio & Sánchez-Marcos, Virginia, 2008. "Balancing family and work: The effect of cash benefits for working mothers," Labour Economics, Elsevier, vol. 15(6), pages 1127-1142, December.
    22. Marit Rønsen, 2009. "Long-term Effects of Cash for Childcare on Mothers' Labour Supply," LABOUR, CEIS, vol. 23(3), pages 507-533, September.
    23. Andersland, Leroy & Nilsen, Øivind A., 2016. "Households’ responses to price changes of formal childcare," Discussion Paper Series in Economics 20/2016, Norwegian School of Economics, Department of Economics.
    24. Rocio S·nchez-Mangas & Virginia S·nchez-Marcos, "undated". "Reconciling female labor participation and motherhood: the effect of benefits for working mothers," Studies on the Spanish Economy 195, FEDEA.
    25. repec:spr:izalpo:v:6:y:2017:i:1:d:10.1186_s40173-017-0089-x is not listed on IDEAS

    More about this item

    Keywords

    Public policy; cash benefits; specialization; I38; J16; J22;

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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