Arbeitspapier
The Effect of Child Care Costs on Gender Inequality
We develop a model to study the impact on gender gaps in participation and wages of a liquidity constraint that prevents some households from paying child care. We show that this liquidity constraint generates an inefficiency and amplifies gender gaps in the labour market. In this framework, an extension of paid maternity leave duration has ambiguous effects on gender inequality. In contrast, child care subsidies, which require higher taxes, and loans, which do not, unambiguously reduce gender inequality. We illustrate the mechanisms at play in a numerical example using Spanish data.
- Language
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Englisch
- Bibliographic citation
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Series: CESifo Working Paper ; No. 9827
- Classification
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Wirtschaft
Economics of Gender; Non-labor Discrimination
Demographic Economics: Public Policy
Fertility; Family Planning; Child Care; Children; Youth
- Subject
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liquidity constraints
gender wage and participation gaps
statistical discrimination
numerical example
- Event
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Geistige Schöpfung
- (who)
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Casarico, Alessandra
Del Rey, Elena
Silva, José Ignacio
- Event
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Veröffentlichung
- (who)
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Center for Economic Studies and ifo Institute (CESifo)
- (where)
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Munich
- (when)
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2022
- Handle
- Last update
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20.09.2024, 8:23 AM CEST
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Casarico, Alessandra
- Del Rey, Elena
- Silva, José Ignacio
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2022