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Economic Incentives, Childcare and Gender Identity Norms

Author

Listed:
  • Ichino, Andrea

    (European University Institute)

  • Olsson, Martin

    (Research Institute of Industrial Economics (IFN))

  • Petrongolo, Barbara

    (Queen Mary University London)

  • Skogman Thoursie, Peter

    (Stockholm University and IFAU)

Abstract

This paper investigates the role of gender identity norms in shaping men's and women's time allocation, based on observed behavior following a change in the market penalty for adopting prescriptive norms. To perform this test, we study the reallocation of childcare across parents, following changes in their relative take-home pay. Exploiting variation from Swedish tax reforms, we estimate the elasticity of substitution in parental childcare for natives and immigrants from a variety of countries, characterized by varying gender norms. We find that couples originating from countries with relatively conservative norms are more likely to reallocate childcare across spouses following a reduction in the husband's tax rate, and less likely to reallocate childcare following a reduction in the wife's tax rate, thereby reinforcing a traditional allocation of childcare across parents.

Suggested Citation

  • Ichino, Andrea & Olsson, Martin & Petrongolo, Barbara & Skogman Thoursie, Peter, 2019. "Economic Incentives, Childcare and Gender Identity Norms," Working Paper Series 1283, Research Institute of Industrial Economics, revised 04 May 2021.
    • Handle: RePEc:hhs:iuiwop:1283
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    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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