UiS Working Papers in Economics and Finance
Crowding out Dad? The Effect of a Cash-for-Care Subsidy on Family time Allocation
Abstract: This paper expands our understanding of possible
specialization effects of extended parental leave policies. Identification
is based on the introduction of the Cash-for-Care program in Norway in
1998, which increased mothers’ incentives to withdraw from the labor market
when their child was one and two years old. I estimate
difference-in-differences models exploiting differences in individuals'
exposures to the program among families with similar structures. Consistent
with Schøne (2004) I find that the cash-for-care program decreased mothers’
labor force participation by about four percentage points. Notably,
however, I find no evidence that the fathers work more to compensate for
the mothers declined labor supply.
Keywords: .; (follow links to similar papers)
JEL-Codes: J13; J22; J24; (follow links to similar papers)
35 pages, March 2, 2012
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