Maybe Baby: Comparing Partnered Women's Employment and Child Policies in the EU-15

Abstract

This paper examines how child-related public policies influence women's employment in Europe. The analysis compares the difference in employment status between partnered mothers and nonmothers across the EU-15 using a wide range of self-constructed indicators of child policies such as childcare provision, parental leave, and tax-cash benefits. Using the recycled predictions method, it is possible to isolate the impact of the presence of a child from other characteristics likely to influence women's labor-market outcomes. Country-specific employment gaps among women are computed at different ages for the youngest child, for different outcomes (inactivity and part-time or full-time work), and for different levels of education. The main conclusion is that when it comes to securing equal labor-market access and conditions for mothers of young children and non-mothers, public childcare provision has the strongest impact. In the absence of public childcare, not even the most highly educated mothers can cope.     

The Impact of Transportation Infrastructure on Women's Employment in India

ABSTRACT

Indian women's labor force participation is extremely low, and women are much less likely than men to work in the nonfarm sector. Earlier research has explained women's labor supply by individual characteristics, social institutions, and cultural norms, but not enough attention has been paid to the labor market opportunity structure that constrains women's labor market activities. Using data from the India Human Development Survey (IHDS) in 2004–05 and 2011–12, this study examines how village transportation infrastructure affects women's and men's agricultural and nonagricultural employment. Results from fixed-effect analysis show that access by paved or unpaved roads and frequent bus services increase the odds of nonagricultural employment among men and women. The effect of road access on nonfarm employment (relative to not working) is stronger among women than among men. Improved transportation infrastructure has a stronger positive effect on women's nonfarm employment in communities with more egalitarian gender norms.     

The Influence of Patriarchal Norms,Institutions, and Household Composition on Women's Employment in Twenty-Eight Muslim-Majority Countries

ABSTRACT

The low level of women's employment in Muslim-majority countries is often explained by patriarchy, while disregarding variation among and within these countries. Using a new theoretical framework, this study translates patriarchy as a concept to macro- and micro-level explanations of employment. It formulates and tests hypotheses for societal norms and institutions and household composition, including how the latter's effects are context dependent. The study analyzes data from surveys (1997–2008) for twenty-eight countries, 383 districts, and 250,410 women and finds that men's public dominance over women decreases women's employment. Presence of – in particular non-foster – children and elderly people at home withholds women from labor market entrance. However, presence of other women in the household stimulates labor market entrance. Absence of a partner, male household head, or other adult men pushes women into the labor market, and thus, for example, male breadwinners' absence has a weaker negative effect in contexts of male public dominance.     

UNANTICIPATED EFFECTS OF CALIFORNIA'S PAID FAMILY LEAVE PROGRAM

We examine the effect of California paid family leave (CPFL) on young women's labor force participation and unemployment, relative to men and older women. CPFL enables workers to take at most 6 weeks of paid leave over a 12‐month period in order to bond with new born or adopted children, or to care for sick family members or ailing parents. The policy benefits women, especially young women, as they are more prone to take such a leave. However, the effect of the policy on overall labor market outcomes is less clear. We apply difference‐in‐difference techniques to identify the effects of the CPFL legislation on young women's labor force participation and unemployment. We find that the labor force participation rate, the unemployment rate, and the duration of unemployment among young women rose in California compared to men (particularly young men) and older women in California, and to other young women, men, and older women in states that did not adopt PFL. The latter two findings regarding higher young women's unemployment and unemployment duration are unanticipated effects of the CPFL program. We utilize robustness checks as well as unique placebo tests to validate these results.(JEL H43, J13, J18, J48)     

Childcare,Household Composition,Muslim Ethnicity,and Off-Farm Work in Rural China

ABSTRACT

This study explores how religious and ethnic norms and gender relations interact across the domestic and public spheres of work in rural China's minority-concentrated regions. It focuses on the roles that childcare and household composition play in the employment decisions of prime-age married individuals of Muslim and non-Muslim ethnicity. Using the 2012 China Household Ethnicity Survey (CHES), the study finds that children generally decrease women's likelihood of employment outside the home and increase men's. The gender gap in the probability of off-farm employment is larger for those of Muslim ethnicity. Non-Muslim parents of sons are more likely to migrate for employment than parents of daughters. The presence of women of grandparent age (46–70) universally facilitates labor migration. Men of grandparent age tend to increase only the probability that non-Muslim parents migrate for employment. Additional adult male household members reduce the likelihood that women of Muslim ethnicity have off-farm employment.     

Women’s Employment and Childcare Choices in Spain Through The Great Recession

The Great Recession (2008–13) changed patterns in women’s employment and the use of formal and informal external childcare among mothers of young children in Spain. This paper analyzes these changes using an analytical strategy that takes into account interdependencies across the outcomes under study. The results show that the economic crisis has resulted in interesting changes in the use of external childcare across mothers’ and fathers’ employment status; for example, as men’s unemployment increased, the use of informal non-parental childcare declined, which might be related to (unobserved) changes in fathers’ involvement in childcare during the recession. These results further indicate the need for policies that improve access to formal childcare, as well as policies that provide men and women with employment stability.     

Gender-Equalizing Family Policies and Mothers' Entry into Paid Work: Recent Evidence From Norway

Universal parental leaves with job protection and earnings compensation increase women's labor market attachment, but very long leaves may have negative consequences at both individual and societal levels. Using panel data from the period 1996–2010, we study whether it is possible to offset the potential negative effects on women's labor supply of long parental leaves by policies targeted especially at fathers, and policies making formal daycare cheaper and more easily available. Norway is used as example, since all recent extensions in the parental leave scheme have been reserved for fathers and at the same time the daycare sector has expanded rapidly. We find that Norwegian mothers did enter work faster after childbirth in the late 2000s than a decade earlier. The latest initiatives may thus have contributed to a shortening of women's career interruptions and a more equal division of paid and unpaid work among parents.     

Structural Features of Female Employment Status and Earnings Mobility: The Experience in Germany

Structural changes in basic economic indicators, changes in traditional role patterns, and in female employment behavior shed light on the performance of the European labor markets in the 90s. This paper focuses on the cyclical sensitivity of women's employment status and earnings position in Germany. Using data from the German Socio-Economic Panel (GSOEP) we test the hypothesis that labor market adjustments are not gender-neutral but affect women's employment status and women's relative earnings position to a greater extent than those of men. Cross-sectional as well as longitudinal analysis indicate positive effects on female employment status and earnings position during a period with worsening economic indicators. Logistic regression analysis confirms an increasing likelihood of an upward earnings mobility for women in the 90s. Notwithstanding these positive trends the results show that - due to social norms and attitudes - women are still discriminated against in the labor market and in terms of their relative earnings position. Thus social policy is called upon to improve women's social and employment conditions.     

Making Labor Flexible: The Recomposition of Tijuana's Maquiladora Female Labor Force

This article revisits the debate over the benefits of export-oriented manufacturing employment for women by taking up Linda Lim's (1990) critique that such research is often biased in its methods and conclusions. Using a sample of 198 women workers from the 1993 Labor Trajectories Survey, I conduct a multivariate statistical analysis to test whether the social and demographic characteristics of the female maquiladora labor force influence their position in the labor market. I find that maquiladoras in Tijuana, Mexico, employ married women, women with children, and women with low levels of education who constitute a low-wage sector of the labor force with few other employment alternatives. In the drive to keep production costs low, multinational manufacturers have tapped into this low-wage labor force, thereby taking advantage of women's labor market disadvantages and making a labor force willing to accept more "flexible" terms of employment.     

Foreign Trade of Manufactures and Men and Women’s Employment and Earnings in Germany and Japan

Using factor content analysis, this paper provides estimates of the effects of manufacturing trade expansion on men and women's employment in Germany and Japan, with breakdowns by world, OECD, and non-OECD trade. Evidence is found that foreign trade expansion had a more negative effect on women's than men's manufacturing employment in Japan and a roughly equal effect in Germany, with the difference between the countries driven by non-OECD trade. In spite of this, demand shifted away from women's manufacturing employment in Germany after the early-1970s, for both the manufacturing sector as a whole and for manufacturing industries with high female shares of employment, while no such labor demand shifts occurred in Japan. In the face of these differences in labor demand and of very similar increases in female labor supply, male-female hourly wage differences narrowed in Germany and widened in Japan, for both manufacturing and non-agricultural employees. It is concluded that shifts in neither labor supply nor labor demand fit with observed trends of male-female wage differences in Germany and Japan.     

The Gender Pension Gap in China

ABSTRACT

China has had a large gender gap in labor force participation, sectors of employment, and earnings. This study shows that disadvantages in the labor market for women are the primary drivers of the gender pension gap. Among people age 60 and older, women receive about half of the amount of men's social pensions. Using the 2013 wave of China Health and Retirement Longitudinal Study (CHARLS) and the CHARLS Life History Survey of 2014, this contribution has three main findings. First, about three-quarters of the deficit in women's pensions is explained by women's lower likelihood of receiving occupational pensions, and one-third is due to smaller benefits when they do receive them. Second, the gender deficit in receiving an occupational pension can be explained by education level and employment sector. Third, among pension recipients, nearly one-third of the gender benefit gap is explained by women's fewer years of employment and lower salaries.     

Has Abe's Womanomics Worked?

The present paper estimates the effect of the Abe Cabinet's Womanomics policies that aimed to increase female labor supply and keep women on a career path. The policies are surveyed, and the effects are estimated using microdata from the Labor Force Survey combined with data at the prefectural level on day care provision. A difference‐in‐difference (DD) method is applied to uncover the impacts of the Abe Cabinet's policies. The rapid increase in the provision of infant care, especially in the urban area, has contributed to a strong increase in the labor participation of mothers with young children. In addition, DD method estimates show a strong increase in mothers with infants staying in permanent‐contract regular employment. A significant shortening of work hours of workers, especially of parents with infants, is observed, which enabled working mothers to maintain their employment status. A change in the gender wage gap in the Japanese labor market is observed, but much progress is still required to close the large wage gap.     

Parental Leave Policy and Gender Equality in Europe

This article uses data from 2008–10 to analyze parental leave policies in twenty-one European countries and their influence on men's behavior. It examines entitlement characteristics, such as nontransferability, duration, payment, compulsory period, and other policies to assess their effect on the proportion of leave men use out of the total parental leave in each country. The findings, which suggest that a large majority of men take nontransferable and highly paid leave, and a small minority take other types, provide the basis for developing the Parental Leave Equality Index (PLEI). PLEI ranks countries by the degree to which parental leave policies reinforce or diminish the gendered division of labor. Results indicate that although Iceland's parental leave policies do the most to advance gender equity, no country has equal, nontransferable, and well-paid leave for each parent. This policy arrangement would be a precondition to men's and women's equal participation in childcare.     

WELFARE REFORM AND CHILDREN'S EARLY COGNITIVE DEVELOPMENT

In this paper, we use a dynamic structural model to measure the effects of (1) single mothers' work and welfare use decisions and (2) welfare reform initiatives on the early cognitive development of the children of the NLSY79 mothers. We use PIAT‐Math scores as a measure of attainment and show that both the mothers' work and welfare use benefit children on average. Our simulation of a policy that combines a time limit with work requirement reduces the use of welfare and increases employment significantly. These changes in turn significantly increase children's cognitive attainment. This implies that the welfare reform was not only successful in achieving its stated goals, but was also beneficial to welfare children's outcomes. In another policy simulation, we show that increasing work incentives for welfare population by exempting labor income from welfare tax can be a very successful policy with some additional benefits for children's outcomes. Finally, a counterfactual with an extended maternal leave policy significantly reduces employment and has negative, though economically insignificant, impact on cognitive outcomes. (JEL I38, J22, J18)     

THE IMPACT OF CHILDCARE COSTS ON THE FULL-TIME/PART-TIME EMPLOYMENT DECISIONS OF AUSTRALIAN MOTHERS

Using data from the HILDA (Household Income and Labour Dynamics), this paper examines the implications of childcare costs on maternal employment status by distinguishing between full-time and part-time work. Our empirical approach uses an ordered probit model taking into account the endogeneity associated with both wages and childcare costs. Results indicate that childcare costs have a statistically insignificant effect on the decision to work either full time or part time. Moreover, the reported elasticities of part-time and full-time work with respect to childcare costs are relatively low. Finally, our results indicate that Australian mothers respond to an increase in wages by increasing both their full-time and part-time employment. Conversely, an increase in the number of young children (particularly under four years of age) and an increase in non-labour income reduce the likelihood of the mother is observed to be working.     

Women's gender-type occupational mobility in Puerto Rico, 1950 — 80

Abstract

This paper investigates the patterns and determinants of women's mobility into and out of male-dominated occupations in Puerto Rico during a period of rapid development between the 1950s and the early 1980s. The paper uses data from the Puerto Rico Fertility and Family Planning Assessment of 1982, which includes detailed retrospective calendar histories of women's employment and other life-course changes. An event history approach allows an examination of the effects of human capital, family status, socialization, and opportunity structure in the labor market on women's entry into male-dominated occupations and their subsequent shifts to other occupations. The findings indicate that women's entry into male-dominated occupations increased for first jobs during this period of economic development, and there was modest cross gender-type mobility among women who experienced job changes. Finally, the variables more directly tapping labor-supply factors show stronger effects on women's labor-force behavior than those more directly tapping labor-demand factors.     

Married women's labor supply and economic development: Evidence from Sri Lankan household data

Women's labor supply in Sri Lanka has increased steadily since the early 1990s following economic reforms, but remains well below the level predicted by national income, a feature shared by a number of Asian and Latin American countries that have undergone similar reforms and economic growth. To understand the microeconomic determinants of women's work in Sri Lanka's growing economy, this paper estimates a binary‐choice model of married women's labor supply using household survey data spanning a 23‐year period. Decomposition and cohort analysis reveal that women have been drawn into the workforce through falling fertility rates, rising tertiary education, and declining income effects among younger generations, but other factors have undermined this positive trend. Educational attainment reduces married women's labor supply except at the tertiary level, consistent with social stigmas associated with married women in non‐white‐collar employment. The strict sectoral segregation of married women by education level supports this hypothesis. In addition, growth has been concentrated in low‐skilled sectors with self‐employment more prevalent, reducing employment prospects of educated women and prompting their labor force withdrawal. This suggests it is the structure of economic development, rather than speed, that matters for women's labor force activity.     

Family Policies and Female Employment in Japan

This paper discusses how childcare and parental leave policies affect female employment by reviewing the international evidence and recent papers on Japan. These papers estimate causal effects of policies by exploiting policy changes, which is a more credible identification strategy than those applied in earlier observational studies. The literature on parental leave finds that a more generous leave package tends to delay mothers’ return to work, but it does not have detrimental effects on maternal labour supply in the medium to long run. Some papers also find that provision of job protection for around 1 year can increase maternal employment, but longer job protection has little additional effects. The literature on childcare policies finds that maternal employment does not necessarily increase, because the expansion of childcare may crowd out informal childcare arrangements, such as care provided by grandparents. Findings by recent papers on Japan are largely consistent with the international evidence.     

The Women's Movement Against Sexual Harassment,by Carrie N. Baker

This paper examines some of the effects of East and West German family policy on women's economic position by analyzing intrahousehold bargaining power, defined here as based on co-resident partners' relative fall-back positions, which in turn depend on the individuals' access to income in the event that the partnership ends. East German policy sought to integrate women into the labor force through programs such as free public child care and liberal maternity leave. West Germany based its family policy on the assumption of a stark gender division of labor, with one lifetime breadwinner per family and a second parent who temporarily leaves the labor force to raise children. On the basis of her findings and analysis, the author argues that while East German institutions increased women's bargaining power, gender-specific policies interfered with women's ability to use this power to bring about changes in the household division of labor. West German family policy did not assign gender roles, but it offered women less bargaining power with which to negotiate. The author maintains that society's refusal to address women's greater child-rearing costs is not based on an assessment of such costs and the costs of redistributive government programs, but on the assumption that women should absorb the risks and burdens of reproduction.     

Childcare Costs and Migrant and Local Mothers' Labor Force Participation in Urban China

ABSTRACT

This study empirically analyzes the impact of childcare costs on the labor force participation (LFP) and childcare utilization of migrant and local mothers of preschool-age children in urban China, using data from the 2010 National Dynamic Monitoring Survey of Floating Populations. The estimates show that childcare costs have a strong negative effect on the LFP and childcare utilization of migrant and local mothers. Compared to local mothers, the LFP and childcare utilization rate of migrant mothers are, respectively, more and less sensitive to changes in childcare costs. The analysis indicates that the LFP and childcare choices of migrant mothers are more constrained by the lack of access to affordable childcare than are local mothers in China.