Crowding out Dad? The Effect of a Cash-for-Care Subsidy on Family time Allocation
This paper expands our understanding of possible specialization effects of extended parental leave policies. Identification is based on the introduction of the Cash-for-Care program in Norway in 1998, which increased mothers’ incentives to withdraw from the labor market when their child was one and two years old. I estimate difference-in-differences models exploiting differences in individuals' exposures to the program among families with similar structures. Consistent with Schøne (2004) I find that the cash-for-care program decreased mothers’ labor force participation by about four percentage points. Notably, however, I find no evidence that the fathers work more to compensate for the mothers declined labor supply.
|Date of creation:||02 Mar 2012|
|Contact details of provider:|| Postal: University of Stavanger, NO-4036 Stavanger, Norway|
Web page: http://www.uis.no/research/economics_and_finance
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- Sara Cools & Jon H. Fiva & Lars J. Kirkebøen, 2015.
"Causal Effects of Paternity Leave on Children and Parents,"
Scandinavian Journal of Economics,
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- Thor O. Thoresen & Annette Alstadsæter, 2008. "Shifts in organizational form under a dual income tax system," Discussion Papers 529, Statistics Norway, Research Department.
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- Schönberg, Uta & Ludsteck, Johannes, 2007. "Maternity Leave Legislation, Female Labor Supply, and the Family Wage Gap," IZA Discussion Papers 2699, Institute for the Study of Labor (IZA). Full references (including those not matched with items on IDEAS)
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