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Having It All? Employment, Earnings and Children

Author

Listed:
  • Laun, Tobias

    () (Department of Economics)

  • Wallenius, Johanna

    () (Department of Economics, Stockholm School of Economics)

Abstract

Sweden boasts high fertility and high female employment. However, part-time employment is very prevalent. There is a notable gender gap in both wages and earnings, which widens substantially after women have children. In this paper we study the effect of family policies on female employment, fertility and the gender wage gap. To this end, we develop a structural, life cycle model of heterogeneous households which features endogenous labor supply, human capital accumulation, fertility and home production. We find that family policies, such as subsidized daycare and part-time work options, promote maternal employment and fertility. Part-time work contributes greatly to the widening of the gender wage gap following the arrival of children. However, restricting part-time work options would lower maternal employment, and thereby also widen the gender wage gap.

Suggested Citation

  • Laun, Tobias & Wallenius, Johanna, 2017. "Having It All? Employment, Earnings and Children," Working Paper Series 2017:6, Uppsala University, Department of Economics.
  • Handle: RePEc:hhs:uunewp:2017_006
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    References listed on IDEAS

    as
    1. Richard Blundell & Monica Costa Dias & Costas Meghir & Jonathan Shaw, 2016. "Female Labor Supply, Human Capital, and Welfare Reform," Econometrica, Econometric Society, vol. 84, pages 1705-1753, September.
    2. Bahar Baziki, Selva & Ginja, Rita & Borota Milicevic, Teodora, 2015. "Trade Competition, Technology and Labor Re-allocation," Working Paper Series, Center for Labor Studies 2016:1, Uppsala University, Department of Economics.
    3. repec:oup:jeurec:v:14:y:2016:i:3:p:639-668. is not listed on IDEAS
    4. Erdal Tekin, 2007. "Childcare Subsidies, Wages, and Employment of Single Mothers," Journal of Human Resources, University of Wisconsin Press, vol. 42(2).
    5. Nikolay Angelov & Per Johansson & Erica Lindahl, 2016. "Parenthood and the Gender Gap in Pay," Journal of Labor Economics, University of Chicago Press, vol. 34(3), pages 545-579.
    6. Erosa, Andres & Fuster, Luisa & Restuccia, Diego, 2016. "A quantitative theory of the gender gap in wages," European Economic Review, Elsevier, vol. 85(C), pages 165-187.
    7. repec:cup:jdemec:v:81:y:2015:i:01:p:75-114_00 is not listed on IDEAS
    8. Alexander Bick, 2016. "The Quantitative Role of Child Care for Female Labor Force Participation and Fertility," Journal of the European Economic Association, European Economic Association, vol. 14(3), pages 639-668.
    9. Christian Siegel, 2017. "Female Relative Wages, Household Specialization and Fertility," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 24, pages 152-174, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Life cycle; Labor supply; Human capital; Fertility; Home production;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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