Raising female employment : reflexions and policy tools

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 labour supply with market frictions and heterogenous home production where the effects of these policies can be coherently analysed. We show that subsidies to labour market entry increase women's entrance in the labour market, but they also increase exits from the labour 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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Year of publication:	2003
Authors:	Garibaldi, Pietro ; Wasmer, Etienne
Publisher:	Bonn : Institute for the Study of Labor (IZA)
Subject:	Frauenerwerbstätigkeit \| Arbeitsangebot \| Arbeitsmarktpolitik \| Heimarbeit \| Teilzeitarbeit \| Wirtschaftspolitische Wirkungsanalyse \| Theorie \| employment rate \| market frictions \| labour market policy

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Series:	IZA Discussion paper series ; 951
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	377082341 [GVK] hdl:10419/20187 [Handle]
Classification:	J2 - Time Allocation; Work Behavior; Employment Determination and Creation ; J0 - Labor and Demographic Economics. General
Source:	EconStor