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Raising Female Employment : Reflections and Policy Tools

  • Pietro Garibaldi

    (Collegio Carlo Alberto)

  • Etienne Wasmer

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 labor supply with market frictions and heterogenous home production where the effects of these policies can be coherently analyzed. We show that subsidies to labor market entry increase women’s entrance in the labor market, but they also increase exits from the labor 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 Sciences Po in its series Sciences Po publications with number info:hdl:2441/8942.

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Date of creation: Apr 2004
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Publication status: Published in Journal of the European Economic Association, 2004, vol. 2, pp.320-330
Handle: RePEc:spo:wpmain:info:hdl:2441/8942
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  1. 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.
  2. 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 647-70, Special I.
  3. 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.
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