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Policies Affecting Work Patterns and Labor Income for Women

Policies Affecting Work Patterns and Labor Income for Women

Chapter:
(p.57) 2 Policies Affecting Work Patterns and Labor Income for Women
Source:
Reforming the Welfare State
Author(s):
Ann-Sofie KolmEdward P. Lazear
Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226261911.003.0003

This chapter analyzes the effects of child care subsidies and other policies on female labor supply decisions in a life cycle context that has not been fully considered in the previous literature. Child care subsidies and three other policies that impact women's labor supply—paid parental leave, in-work benefits, and tax relief on substitutes for household goods and services—are considered. The chapter develops a new model to examine the impact of the policies on the work outcomes, and links the model to observed behavior. The chapter concludes that the programs in that model strengthen the economic independence of women. They create a high excess burden by being financed through higher taxes, but because the benefits go disproportionately to women, while the costs are borne disproportionately by men, the policies aid women.

Keywords:   child care subsidies, policies, work patterns, labor supply, women

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