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The Relationship between Hours of Domestic Services and Female Earnings: Panel Register Data Evidence from a Reform

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  • Halldén, Karin

    (Swedish Institute for Social Research, Stockholm University)

  • Stenberg, Anders

    (Swedish Institute for Social Research, Stockholm University)

Abstract

We provide evidence on the quantitative relationship between household time con-straints and female earnings. In 2007, a tax discount reform in Sweden reduced prices of outsourced domestic services (ODS) by 50 percent. Linking population register data on yearly tax discounts with annual earnings, we find that 60 percent of married women’s freed hours are applied to labor market work, with ODS of approximately 2-4 percent of full-time work in a year being linked to a 2-4 percent earnings increase, but with no additional increase thereafter. The analysis carefully considers potential bias and outlines the required assumptions regarding reverse causality.

Suggested Citation

  • Halldén, Karin & Stenberg, Anders, 2013. "The Relationship between Hours of Domestic Services and Female Earnings: Panel Register Data Evidence from a Reform," Working Paper Series 4/2013, Stockholm University, Swedish Institute for Social Research.
    • Handle: RePEc:hhs:sofiwp:2013_004
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    Cited by:

    1. Shire, Karen A. & Schnell, Rainer & Noack, Marcel, 2017. "Determinants of outsourcing domestic labour in conservative welfare states: Resources and market dynamics in Germany," Duisburger Beiträge zur soziologischen Forschung 2017-04, University of Duisburg-Essen, Institute of Sociology.
    2. Sara EldéN & Terese Anving, 2016. "New Ways of Doing the ‘Good’ and Gender Equal Family: Parents Employing Nannies and Au Pairs in Sweden," Sociological Research Online, , vol. 21(4), pages 44-56, November.
    3. Albrecht, James & Skogman Thoursie, Peter & Vroman, Susan, 2015. "Parental leave and the glass ceiling in Sweden," Working Paper Series 2015:4, IFAU - Institute for Evaluation of Labour Market and Education Policy.

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    More about this item

    Keywords

    household work; outsourcing; female labor supply;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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