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What accounts for the increase in female labor force participation in Spain

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  • Osuna, Victoria

Abstract

Over the last three decades, Spanish female labor force participation (LFP) has tremendously increased, particularly, that of married women. At the same time, the income tax structure, the fiscal treatment of families, policies to reconcile family and work, and the education distribution of married couples have substantially changed. By contrast, the gender wage gap has remained quite stable. In this paper the author investigates the relevance of these factors in accounting for the growth in Spanish married women labor force participation from 1994 to 2008. For that purpose, she uses Kaygusuz (Taxes and female labor supply, 2010) model of household labor market participation, and data from Eurostat to calibrate the model and evaluate its performance. The model successfully accounts for the rise in aggregate female labor force participation, and matches hours worked by males and females. The model is also able to replicate the pattern of female labor force participation by age and education. From this analysis we can conclude that changes in tax rates and in the education distribution are the main factors behind the increase in female LFP during the late nineties, while changes in child care costs and earning profiles are mainly responsible for the subsequent growth in the 2000s.

Suggested Citation

  • Osuna, Victoria, 2018. "What accounts for the increase in female labor force participation in Spain," Economics Discussion Papers 2018-6, Kiel Institute for the World Economy (IfW).
  • Handle: RePEc:zbw:ifwedp:20186
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    References listed on IDEAS

    as
    1. Azmat, Ghazala & González, Libertad, 2010. "Targeting fertility and female participation through the income tax," Labour Economics, Elsevier, vol. 17(3), pages 487-502, June.
    2. Sara Rica & Juan Dolado & Vanesa Llorens, 2008. "Ceilings or floors? Gender wage gaps by education in Spain," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(3), pages 751-776, July.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    female labor force participation; gender wage gap; income tax; educational distribution; wage profiles; child care costs;

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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