Raising Female Employment: Reflexions and Policy Tools
While there is consensus on the need to raise the time spent in the market by European women, it is not clear how these goals should be achieved. Tax wedges, assistance in the job search process, and part-time jobs are policy instruments that are widely debated in policy circles. The paper presents a simple model of labour supply with market frictions and heterogenous home production where the effects of these policies can be coherently analysed. We show that subsidies to labour market entry increase women's entrance in the labour market, but they also increase exits from the labour market, with ambiguous effect on employment. Subsidies to part-time do increase employment, but they have ambiguous effects on hours and market production. Finally, reductions in taxes on market activities that are highly substitutable with home production have unambiguous positive effects on market employment and production.
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| Length: | 17 pages |
| Date of creation: | Dec 2003 |
| Publication status: | published in: Journal of the European Economic Association, 2004, 2 (2-3), 320-330 |
| Handle: | RePEc:iza:izadps:dp951 |
| Contact details of provider: | Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany Phone: +49 228 3894 223 Fax: +49 228 3894 180 Web page: http://www.iza.org
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References listed on IDEAS
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- Freeman, Richard B & Schettkat, Ronald, 2001.
" Marketization of Production and the US-Europe Employment Gap,"
Oxford Bulletin of Economics and Statistics,
Department of Economics, University of Oxford, vol. 63(0), pages 647-670, Special I.
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- Ronald Schettkat & Richard B. Freeman, 2002. "Marketization of production and the US-Europe employment gap," LSE Research Online Documents on Economics 20061, London School of Economics and Political Science, LSE Library.
- Richard B. Freeman & Ronald Schettkat, 2002. "Marketization of Production and the US-Europe Employment Gap," NBER Working Papers 8797, National Bureau of Economic Research, Inc.
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- Davis, Steven J. & Henrekson, Magnus, 2004. "Tax Effects on Work Activity, Industry Mix and Shadow Economy Size: Evidence from Rich-Country Comparisons," SSE/EFI Working Paper Series in Economics and Finance 560, Stockholm School of Economics.
- Davis, Steven J. & Henrekson, Magnus, 2004. "Tax Effects on Work Activity, Industry Mix and Shadow Economy Size: Evidence from Rich-Country Comparisons," Ratio Working Papers 57, The Ratio Institute.
- Garibaldi, Pietro & Wasmer, Etienne, 2001. "Labor Market Flows and Equilibrium Search Unemployment," IZA Discussion Papers 406, Institute for the Study of Labor (IZA).
- Christopher Pissarides & Pietro Garibaldi & Claudia Olivetti & Barbara Petrongolo & Etienne Wasmer, 2005. "Women in the Labour Force : How Well is Europe Doing ?," Sciences Po publications info:hdl:2441/9081, Sciences Po. Full references (including those not matched with items on IDEAS)
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