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

  • Ulrike Jäger

It is a well-established fact that mothers' labour force participation reacts differently todifferent types of family benefits. It is also already well-known that cultural and religiousfactors have an impact on their labour force participation. But does the labour forcereaction to family benefits differ among more religious mothers? In this paper, I analysehow both factors – benefits and religiosity – interact when it comes to the decision concerninglabour force participation. Firstly, I present a theoretical model which predicts thatthis difference exists. Secondly, I test this prediction in a sample of pooled cross-sectiondata 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 toincreases in family benefits. I also find important differences among various religiousaffiliations. These results imply that trends in religiosity should be considered whendesigning labour market policies.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-Ifo_Working_Papers/wp-ifo-2005-2010/IfoWorkingPaper-84.pdf
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Paper provided by Ifo Institute for Economic Research at the University of Munich in its series Ifo Working Paper Series with number Ifo Working Paper Nr. 84.

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Date of creation: 2010
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Handle: RePEc:ces:ifowps:_84
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  1. Algan, Yann & Cahuc, Pierre, 2005. "The Roots of Low European Employment: Family Culture?," IZA Discussion Papers 1683, Institute for the Study of Labor (IZA).
  2. Florence Jaumotte, 2003. "Labour Force Participation of Women: Empirical Evidence on The Role of Policy and Other Determinants in OECD Countries," OECD Economic Studies, OECD Publishing, vol. 2003(2), pages 51-108.
  3. Alesina, Alberto & Giuliano, Paola, 2007. "The Power of the Family," IZA Discussion Papers 2750, Institute for the Study of Labor (IZA).
  4. Victor Hiller, 2008. "Gender Inequality, Endogenous Cultural Norms and Economic Development," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00344793, HAL.
  5. 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.
  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. 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.
  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 634-51, September.
  9. 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.
  10. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
  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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