Working Paper Series, Department of Economics, Uppsala University
Having It All? Employment, Earnings and Children
() and Johanna Wallenius
Abstract: Sweden boasts high fertility and high female employment.
However, part-time employment is very prevalent. There is a notable gender
gap in both wages and earnings, which widens substantially after women have
children. In this paper we study the effect of family policies on female
employment, fertility and the gender wage gap. To this end, we develop a
structural, life cycle model of heterogeneous households which features
endogenous labor supply, human capital accumulation, fertility and home
production. We find that family policies, such as subsidized daycare and
part-time work options, promote maternal employment and fertility.
Part-time work contributes greatly to the widening of the gender wage gap
following the arrival of children. However, restricting part-time work
options would lower maternal employment, and thereby also widen the gender
Keywords: Life cycle; Labor supply; Human capital; Fertility; Home production; (follow links to similar papers)
JEL-Codes: E24; J22; J24; (follow links to similar papers)
32 pages, April 23, 2017
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