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Raising Female Employment: Reflexions and Policy Tools

  • Garibaldi, Pietro

    ()

    (University of Turin)

  • Wasmer, Etienne

    ()

    (Sciences Po, Paris)

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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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 951.

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Length: 17 pages
Date of creation: Dec 2003
Date of revision:
Publication status: published in: Journal of the European Economic Association, 2004, 2 (2-3), 320-330
Handle: RePEc:iza:izadps:dp951
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  1. 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.
  2. Steven J. Davis & Magnus Henrekson, 2004. "Tax Effects on Work Activity, Industry Mix and Shadow Economy Size: Evidence from Rich-Country Comparisons," NBER Working Papers 10509, National Bureau of Economic Research, Inc.
  3. 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.
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