nep-dem New Economics Papers
on Demographic Economics
Issue of 2019‒05‒20
four papers chosen by
Héctor Pifarré i Arolas
Universitat Pompeu Fabra

  1. Does subsidized care for toddlers increase maternal labor supply?: Evidence from a large-scale expansion of early childcare By Kai-Uwe Müller; Katharina Wrohlich
  2. Crisis at Home: Mancession-induced Change in Intrahousehold Distribution By Olivier Bargain; Laurine Martinoty
  3. Marital Property Laws and Women’s Labour Supply By Stephanie Lluis; Yazhuo (Annie) Pan
  4. Family and Government Insurance: Wage, Earnings, and Income Risks in the Netherlands and the U.S. By Mariacristina De Nardi; Giulio Fella; Marike G. Knoef; Gonzalo Paz-Pardo; Raun Van Ooijen

  1. By: Kai-Uwe Müller (German Institute for Economic Research Berlin (DIW Berlin)); Katharina Wrohlich (German Institute for Economic Research Berlin (DIW Berlin))
    Abstract: Expanding public or publicly subsidized childcare has been a top social policy priority in many industrialized countries. It is supposed to increase fertility, promote children’s development and enhance mothers’ labor market attachment. In this paper, we analyze the causal effect of one of the largest expansions of subsidized childcare for children up to three years among industrialized countries on the employment of mothers in Germany. Identification is based on spatial and temporal variation in the expansion of publicly subsidized childcare triggered by two comprehensive childcare policy reforms. The empirical analysis is based on the German Microcensus that is matched to county level data on childcare availability. Based on our preferred specification which includes time and county fixed effects we find that an increase in childcare slots by one percentage point increases mothers’ labor market participation rate by 0.2 percentage points. The overall increase in employment is explained by the rise in part-time employment with relatively long hours (20-35 hours per week). We do not find a change in full-time employment or lower part-time employment that is causally related to the childcare expansion. The effect is almost entirely driven by mothers with medium-level qualifications. Mothers with low education levels do not profit from this reform calling for a stronger policy focus on particularly disadvantaged groups in coming years.
    Keywords: childcare provision; mother’s labor supply; generalized difference-in-difference
    JEL: J22 J13 H43
    Date: 2019–05
  2. By: Olivier Bargain (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - ECM - Ecole Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique - AMU - Aix Marseille Université - EHESS - École des hautes études en sciences sociales); Laurine Martinoty (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: The Great Recessions was essentially a 'mancession' in countries like Spain, the UK or the US, i.e. it hit men harder than women for they were disproportionately represented in heavily affected sectors. We investigate how the mancession, and more generally women's relative opportunities on the labor market, translate into within-household redistribution. Precisely, we estimate the spouses' resource shares in a collective model of consumption, using Spanish data over 2006-2011. We exploit the gender-oriented evolution of the economic environment to test two original distribution factors: first the regional-time variation in spouses' relative unemployment risks, then the gender-differentiated shock in the construction sector (having a construction sector husband after the outburst of the crisis). Both approaches conclude that the resource share accruing to Spanish wives increased by around 7-9 percent on average, following the improvement of their relative labor market positions. Among childless couples, we document a 5-11 percent decline in individual consumption inequality following the crisis, which is essentially due to intrahousehold redistribution.
    Keywords: mancession,intrahousehold allocation,unemployment risk
    Date: 2018
  3. By: Stephanie Lluis (Department of Economics, University of Waterloo); Yazhuo (Annie) Pan (Department of Economics, University of Waterloo)
    Abstract: In this paper, we study whether and if so how changes in the marital property law following the amendment of the Civil Code of Quebec to improve economic equality between spouses impacted household labour supply and individuals' marital decisions. We exploit detailed information on individuals' labour market and marital status from the Labour Force Survey to analyze short-term changes in labour supply and marital decisions before and after the reforms in Quebec relative to other provinces, which did not experience the changes in the marital property law over that time period. Investigating the labour supply and marital decisions' responses to a policy changing the distribution of resources between men and women may assist welfare agencies in the design of family reforms and more generally, help further reduce women's entry into poverty. Furthermore, analyzing whether the Quebec marital property law changed the demographic mix of couples may further inform policymaker about possible ways to improve gender equality.
    JEL: C21 H75 J12 J22
    Date: 2018–11–12
  4. By: Mariacristina De Nardi; Giulio Fella; Marike G. Knoef; Gonzalo Paz-Pardo; Raun Van Ooijen
    Abstract: We document new facts on the distributions of male wages, male earnings, and household earnings and income (before and after taxes) in the Netherlands and the United States. We find that, in both countries, wages display rich dynamics, including substantial asymmetries and nonlinearities by age and previous earnings levels. Individual-level male wage and earnings risk is relatively high for younger and older people, and for those in the lower and upper parts of the income distribution. In the Netherlands, the behavior of hours and family labor supply have noticeable effects on earnings persistence and on the skewness and kurtosis of wage changes, but government transfers are a major source of insurance. Instead, the role of family insurance is much larger in the U.S. and also affects the standard deviation of wage changes, in addition to its skewness and kurtosis, and wage persistence. Family and government insurance reduce, but do not eliminate these non-linearities in household disposable income by age and previous earnings in both countries.
    JEL: H31
    Date: 2019–05

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