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Working or stay-at-home mum? The influence of family benefits and religiosity

Author

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  • Ulrike Jäger

Abstract

It is a well-established fact that mothers' labour force participation reacts differently to different types of family benefits. It is also already well-known that cultural and religious factors have an impact on their labour force participation. But does the labour force reaction to family benefits differ among more religious mothers? In this paper, I analyse how both factors – benefits and religiosity – interact when it comes to the decision concerning labour force participation. Firstly, I present a theoretical model which predicts that this difference exists. Secondly, I test this prediction in a sample of pooled cross-section data from 10 OECD countries using different measures to assess the extent of religiosity. There is evidence that religious mothers react less than non-religious mothers to increases in family benefits. I also find important differences among various religious affiliations. These results imply that trends in religiosity should be considered when designing labour market policies.

Suggested Citation

  • Ulrike Jäger, 2010. "Working or stay-at-home mum? The influence of family benefits and religiosity," ifo Working Paper Series 84, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
  • Handle: RePEc:ces:ifowps:_84
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    File URL: http://www.cesifo-group.de/DocDL/IfoWorkingPaper-84.pdf
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    References listed on IDEAS

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    1. Florence Jaumotte, 2004. "Labour Force Participation of Women: Empirical Evidence on The Role of Policy and Other Determinants in OECD Countries," OECD Economic Studies, OECD Publishing, pages 51-108.
    2. Yann Algan & Pierre Cahuc, 2005. "The Roots of Low European Employment: Family Culture?," NBER Chapters,in: NBER International Seminar on Macroeconomics 2005, pages 65-109 National Bureau of Economic Research, Inc.
    3. 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.
    4. Alberto Alesina & Paola Giuliano, 2010. "The power of the family," Journal of Economic Growth, Springer, vol. 15(2), pages 93-125, June.
    5. Victor Hiller, 2014. "Gender Inequality, Endogenous Cultural Norms, and Economic Development," Scandinavian Journal of Economics, Wiley Blackwell, pages 455-481.
    6. Bonin, Holger & Euwals, Rob, 2001. "Participation Behavior of East German Women after German Unification," IZA Discussion Papers 413, Institute for the Study of Labor (IZA).
    7. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
    8. Gronau, Reuben, 1973. "The Intrafamily Allocation of Time: The Value of the Housewives' Time," American Economic Review, American Economic Association, vol. 63(4), pages 634-651, September.
    9. Edward C. Norton & Hua Wang & Chunrong Ai, 2004. "Computing interaction effects and standard errors in logit and probit models," Stata Journal, StataCorp LP, vol. 4(2), pages 154-167, June.
    10. A. Chevalier & T. K. Viitanen, 2002. "The causality between female labour force participation and the availability of childcare," Applied Economics Letters, Taylor & Francis Journals, vol. 9(14), pages 915-918.
    11. David M. Blau & Alison P. Hagy, 1998. "The Demand for Quality in Child Care," Journal of Political Economy, University of Chicago Press, vol. 106(1), pages 104-146, February.
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    Cited by:

    1. Pieters, Janneke & Klasen, Stephan, 2011. "Drivers of female labour force participation in urban India during India's Economic Boom," Proceedings of the German Development Economics Conference, Berlin 2011 65, Verein für Socialpolitik, Research Committee Development Economics.

    More about this item

    Keywords

    Female labour force participation; public benefits; culture; family attitudes;

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • Z10 - Other Special Topics - - Cultural Economics - - - General
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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