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

Listed author(s):
  • Halldén, Karin

    (Swedish Institute for Social Research, Stockholm University)

  • Stenberg, Anders

    (Swedish Institute for Social Research, Stockholm University)

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.

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Paper provided by Swedish Institute for Social Research in its series Working Paper Series with number 4/2013.

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Length: 41 pages
Date of creation: 09 Oct 2013
Handle: RePEc:hhs:sofiwp:2013_004
Contact details of provider: Postal:
SOFI, Stockholm University, SE-10691 Stockholm, Sweden

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Web page: http://www.sofi.su.se/

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