Care earnings in the United States and 24 European countries: The role of social policy and labour market institutions

Abstract

Care occupations are gendered and remain relatively poorly paid, particularly in the United States. Prior research on the 'care penalty' primarily points to individual, relational, and market-valuation factors in explaining the relative earnings of care workers. This study integrates these explanations with a comparative institutional perspective. Using higherquality data and methods than previous comparative research in the field-that is, harmonized micro-data from the Current Population Survey and EU-SILC from 2005 to 2016, country and year fixed effects models, and a counterfactual analysis-we find that national variance in labour market and welfare state institutions explains most of the difference in the relative earnings of reproductive care workers between the United States and European countries. Higher rates of collective bargaining coverage, stronger employment protection and welfare state spending contribute to higher relative earnings for reproductive care occupations, and lower relative earnings for high-status nurturant care occupations. Differences in the relative earnings of care workers appear to be mostly a construct of social policy and labour market institutions rather than individual, relational, and market-valuation factors.

Hidden behind closed doors: Non‐standard employment, migrant women and gender regimes in Europe

“…A vast literature has emphasised that domestic workwhich in its broad definition includes both housework and (non-medical non-qualified) care work (ILO, 2013)enjoys a bad reputation and is traditionally attributed low value (Anderson, 2000;Cox, 2006;Ehrenreich & Hochschild, 2002;Hochschild, 2012;Hondagneu-Sotelo, 2001;Lutz, 2008Lutz, , 2011Parreñas, 2001;Rollins, 1985). Care and domestic workers are typically suffering from the 'care wage penalty' and from an overall devaluation of their work, which goes far beyond the economic argument (Ferragina & Parolin, 2022;Lightman, 2021).…”

The ‘Two Lives’ of Esping-Andersen and the Revival of a Research Programme: Gender equality, employment and redistribution in contemporary social policy

“…Esping-Andersen suggested that 'the move of women into paid employment implies a double job multiplier, visible on both the consumption and production side of the national accounts ledger' (Esping-Andersen et al, 2002, p. 68). However, a growth of services, especially in the domain of care, goes hand in hand with inequalities (as Esping-Andersen highlights himself; see Ferragina & Parolin, 2022); more consumption of these services means an increase of low-paid jobs. This is particularly true in countries with lower levels of social protection and decommodification.…”