TY - JOUR
T1 - Raising female employment
T2 - Reflections and policy tools
AU - Garibaldi, Pietro
AU - Wasmer, Etienne
PY - 2004
Y1 - 2004
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=77957064162&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=77957064162&partnerID=8YFLogxK
U2 - 10.1162/154247604323068023
DO - 10.1162/154247604323068023
M3 - Article
AN - SCOPUS:77957064162
SN - 1542-4766
VL - 2
SP - 320
EP - 330
JO - Journal of the European Economic Association
JF - Journal of the European Economic Association
IS - 2-3
ER -