Scandinavian Working Papers in Economics

Working Paper Series,
Research Institute of Industrial Economics

No 1283: Economic Incentives, Home Production and Gender Identity Norms

Andrea Ichino (), Martin Olsson (), Barbara Petrongolo () and Peter Skogman Thoursie ()
Additional contact information
Andrea Ichino: European University Institute, Postal: U. Bologna and CEPR
Martin Olsson: Research Institute of Industrial Economics (IFN), Postal: and IFAU
Barbara Petrongolo: Queen Mary University London, Postal: CEP (LSE) and CEPR
Peter Skogman Thoursie: Stockholm University and IFAU

Abstract: We infer the role of gender identity norms from the reallocation of childcare across parents, following changes in their relative wages. By exploiting variation from a Swedish tax reform, we estimate the elasticity of substitution in parental childcare for the whole population and for demographic groups potentially adhering to differently binding norms. We find that immigrant, married and male breadwinner couples, as well as couples with a male first-born, react more strongly to tax changes that induce a more traditional allocation of spouses' time, while the respective counterpart couples react more strongly to tax changes that induce a more egalitarian division of labor.

Keywords: Home production; Taxes; Gender identity; Gender gaps

JEL-codes: D13; H24; J22

56 pages, June 4, 2019

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