IDEAS home Printed from https://ideas.repec.org/p/ces/ceswps/_3833.html
   My bibliography  Save this paper

Trapped at Home: The Effect of Mothers' Temporary Labor Market Exits on their Subsequent Work Career

Author

Listed:
  • Nina Drange
  • Mari Rege

Abstract

This paper investigates how mothers’ decision to stay at home with young children affects their subsequent work careers. Identification is based on the introduction of the Cash-for-Care program in Norway in 1998, which increased mothers’ incentives to withdraw from the labor market when their child was one and two years old. Our estimates demonstrate that the program had effects on earnings and full-time employment even when the child was no longer eligible for Cash-for-Care at ages four and five. However, from age six, we can no longer see any effects. The effects seem to dissipate because most mothers remained attached to the labor force through part-time employment.

Suggested Citation

  • Nina Drange & Mari Rege, 2012. "Trapped at Home: The Effect of Mothers' Temporary Labor Market Exits on their Subsequent Work Career," CESifo Working Paper Series 3833, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_3833
    as

    Download full text from publisher

    File URL: http://www.cesifo-group.de/DocDL/cesifo1_wp3833.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Sara Cools & Jon H. Fiva & Lars J. Kirkebøen, 2015. "Causal Effects of Paternity Leave on Children and Parents," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(3), pages 801-828, July.
    2. Gordon B. Dahl & Lance Lochner, 2012. "The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit," American Economic Review, American Economic Association, pages 1927-1956.
    3. 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.
    4. Jonah B. Gelbach, 2002. "Public Schooling for Young Children and Maternal Labor Supply," American Economic Review, American Economic Association, vol. 92(1), pages 307-322, March.
    5. Mincer, Jacob & Polachek, Solomon, 1974. "Family Investment in Human Capital: Earnings of Women," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 76-108, Part II, .
    6. Eric Bettinger & Torbjørn Haegeland & Mari Rege, 2014. "Home with Mom: The Effects of Stay-at-Home Parents on Children's Long-Run Educational Outcomes," Journal of Labor Economics, University of Chicago Press, vol. 32(3), pages 443-467.
    7. Antoni Calvó-Armengol & Matthew O. Jackson, 2004. "The Effects of Social Networks on Employment and Inequality," American Economic Review, American Economic Association, vol. 94(3), pages 426-454, June.
    8. Christopher J. Ruhm, 1998. "The Economic Consequences of Parental Leave Mandates: Lessons from Europe," The Quarterly Journal of Economics, Oxford University Press, vol. 113(1), pages 285-317.
    9. Lawrence M. Berger & Jane Waldfogel, 2004. "Maternity leave and the employment of new mothers in the United States," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(2), pages 331-349, June.
    10. 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.
    11. Rafael Lalive & Josef Zweimüller, 2009. "How Does Parental Leave Affect Fertility and Return to Work? Evidence from Two Natural Experiments," The Quarterly Journal of Economics, Oxford University Press, vol. 124(3), pages 1363-1402.
    12. Michael Baker & Kevin Milligan, 2008. "How Does Job-Protected Maternity Leave Affect Mothers' Employment?," Journal of Labor Economics, University of Chicago Press, vol. 26(4), pages 655-691, October.
    13. Marit Rønsen, 2009. "Long-term Effects of Cash for Childcare on Mothers' Labour Supply," LABOUR, CEIS, vol. 23(3), pages 507-533, September.
    14. Gordon B. Dahl & Lance Lochner, 2005. "The Impact of Family Income on Child Achievement," NBER Working Papers 11279, National Bureau of Economic Research, Inc.
    15. Pål Schøne, 2004. "Labour supply effects of a cash-for-care subsidy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 17(4), pages 703-727, December.
    16. Mari Rege & Ingeborg Solli, 2013. "The Impact of Paternity Leave on Fathers’ Future Earnings," Demography, Springer;Population Association of America (PAA), vol. 50(6), pages 2255-2277, December.
    17. Jacob Mincer & Haim Ofek, 1982. "Interrupted Work Careers: Depreciation and Restoration of Human Capital," Journal of Human Resources, University of Wisconsin Press, vol. 17(1), pages 3-24.
    18. Schönberg, Uta & Ludsteck, Johannes, 2007. "Maternity Leave Legislation, Female Labor Supply, and the Family Wage Gap," IZA Discussion Papers 2699, Institute for the Study of Labor (IZA).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Eric Bettinger & Torbjørn Haegeland & Mari Rege, 2014. "Home with Mom: The Effects of Stay-at-Home Parents on Children's Long-Run Educational Outcomes," Journal of Labor Economics, University of Chicago Press, vol. 32(3), pages 443-467.
    2. Synøve N. Andersen & Nina Drange & Trude Lappegård, 2015. "Can a cash transfer to families change fertility behaviour?," Discussion Papers 800, Statistics Norway, Research Department.
    3. Doerr, Annabelle, 2017. "Back to work: The long-term effects of vocational training for female job returners," Freiburg Discussion Papers on Constitutional Economics 17/02, Walter Eucken Institut e.V..
    4. Nina Drange & Tarjei Havnes, 2012. "Kindergarten for all: Long run effects of a universal intervention," Discussion Papers 695, Statistics Norway, Research Department.
    5. Reiso, Katrine Holm, 2014. "The Effect of Welfare Reforms on Benefit Substitution," Discussion Paper Series in Economics 22/2014, Department of Economics, Norwegian School of Economics.
    6. Biewen, Martin & Seifert, Stefanie, 2016. "Potential Parenthood and Career Progression of Men and Women: A Simultaneous Hazards Approach," IZA Discussion Papers 10050, Institute for the Study of Labor (IZA).
    7. Doerr, Annabelle, 2017. "Back to work: The Long-term Effects of Vocational Training for Female Job Returners," Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168213, Verein für Socialpolitik / German Economic Association.
    8. Andersland, Leroy & Nilsen, Øivind A., 2016. "Households’ responses to price changes of formal childcare," Discussion Paper Series in Economics 20/2016, Department of Economics, Norwegian School of Economics.
    9. Drange, Nina & Havnes, Tarjei & Sandsør, Astrid M.J., 2016. "Kindergarten for all: Long run effects of a universal intervention," Economics of Education Review, Elsevier, vol. 53(C), pages 164-181.

    More about this item

    Keywords

    female labor supply; family; home production; parental leave;

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_3833. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Klaus Wohlrabe). General contact details of provider: http://edirc.repec.org/data/cesifde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.