Scandinavian Working Papers in Economics
Working Paper Series,
Stockholm University, Swedish Institute for Social Research
No 4/2013: The Relationship between Hours of Domestic Services and Female Earnings: Panel Register Data Evidence from a Reform
Karin Halldén and Anders Stenberg
Additional contact information
Karin Halldén: Swedish Institute for Social Research, Stockholm University, Postal: SOFI, Stockholm University, SE-106 91 Stockholm, Sweden
Anders Stenberg: Swedish Institute for Social Research, Stockholm University, Postal: SOFI, Stockholm University, SE-106 91 Stockholm, Sweden
Abstract: We provide evidence on the quantitative relationship between household time con-straints and female earnings. In 2007, a tax discount reform in Sweden reduced prices of outsourced domestic services (ODS) by 50 percent. Linking population register data on yearly tax discounts with annual earnings, we find that 60 percent of married women’s freed hours are applied to labor market work, with ODS of approximately 2-4 percent of full-time work in a year being linked to a 2-4 percent earnings increase, but with no additional increase thereafter. The analysis carefully considers potential bias and outlines the required assumptions regarding reverse causality.
Keywords: household work; outsourcing; female labor supply
41 pages, October 9, 2013
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