Discussion Paper Series in Economics, Department of Economics, Norwegian School of Economics (NHH)
The Family Peer Effect on Mothers´ Labour Supply.
(), Kjell G. Salvanes
() and Emma Tominey
Abstract: The well documented rise in female labour force
participation in the last century has fl‡attened in recent decades, but the
proportion of mothers working full-time has been steadily increasing. In
this paper we provide the …first empirical evidence that the increase in
mothers’ working hours can be amplifi…ed through the effect on her labour
decisions from the decisions of her family peers. Using Norwegian
administrative data covering the full population of women, we study the
long-run in‡fluence of the family network on mothers’labour decisions up to
seven years post birth by regressing the mothers’working hours on the
average working hours across her sisters and female cousins. To identify
the causal peer effect, we exploit and extend the partially overlapping
peer group approach by considering for each mother both her family and her
neighbourhood networks, therefore assuming that a mother interacts with her
neighbours and family but she does not interact meaningfully with her
family’s neighbours. Moreover, we provide some empirical evidence on the
potential mechanisms such as the importance of information transmission
versus imitation in explaining the peer effect.
Keywords: Peer effects; Family network; Sibling spillover effects; Cousins spillover effects; Instrumental variable estimation.; (follow links to similar papers)
JEL-Codes: C21; C26; D85; (follow links to similar papers)
52 pages, April 15, 2016
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