Explaining Changes in Female Labor Supply in a Life-Cycle Model

Attanasio, Orazio; Low, Hamish; Sánchez-Marcos, Virginia

doi:10.1257/aer.98.4.1517

Cited by 379 publications

(368 citation statements)

References 37 publications

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“…4 As we mentioned earlier, this bias originates from the fact that the U.S. tax system taxes the income of households, not the income of individuals. As a result, for a woman who considers entering the labor force, her marginal tax rate depends on her husbands'income.…”

Section: Current Us Taxesmentioning

confidence: 96%

Taxing women: A macroeconomic analysis

Guner

Kaygusuz

Ventura

2012

Journal of Monetary Economics

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Based on well-known evidence on labor supply elasticities, several authors have concluded that women should be taxed at lower rates than men. We evaluate the quantitative implications of taxing women at a lower rate than men. Relative to the current system of taxation, setting a proportional tax rate on married females equal to 4% (8%) increases output and married female labor force participation by about 3.9% (3.4%) and 6.9% (4.0%), respectively. Gender-based taxes improve welfare and are preferred by a majority of households. Nevertheless, welfare gains are higher when the U.S. tax system is replaced by a proportional, gender-neutral income tax.JEL Classi…cations: E62, H31, J12, J22

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Section: Current Us Taxesmentioning

confidence: 96%

Taxing women: A macroeconomic analysis

Guner

Kaygusuz

Ventura

2012

Journal of Monetary Economics

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“…He furthermore finds that in particular participation of high-skilled women has increased. Attanasio, Low & Sanchez-Marcos (2004) use the PSID 1969-1998 to calibrate a life-cycle model for three generations of women. They conclude that in particular shifts in the costs of children relative to life time earnings are the most likely explanation for the strong increase in labour supply over the generations of women.…”

Section: The Increase In Female Participationmentioning

confidence: 99%

The trend in female labour force participation: what can be expected for the future?

2010

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit company supported by Deutsche Post World Net. The center is associated with the University of Bonn and offers a stimulating research environment through its research networks, research support, and visitors and doctoral programs. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. During the 1980s and 1990s, the Netherlands experienced a strong increase in the labour force participation of women. This study investigates the increase of participation over the successive generations of women, and produces an educated guess for future participation. For this purpose, we estimate a binary age-period-cohort model for the generations born between 1925 and 1986, using data from the Dutch Labour Force Survey 1992-2004. The results indicate that the increasing level of education, the diminishing negative effect of children, and unobserved cohort effects have played an important role. According to our estimates, the increase in unobserved cohort effects has stopped since the generation born in 1955. This result is in line with results of studies on social norms and attitudes towards the combination of female employment and family responsibilities, which show a similar pattern over the successive generations. We observe that future participation growth importantly depends on the evolvement of attitudes towards the combination of paid work and children. We have therefore constructed two alternative future scenarios, the first with constant norms with respect to this factor, and the second with a further evolvement. It is estimated that the remaining growth will compensate for about one third of the structural fiscal deficit caused by population ageing in the Netherlands.JEL Classification: J11, J21

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“…Within this literature, Olivetti (2006) also emphasizes endogenous work experience and argues that an increase in the returns to experience are a major reason behind the increase in female participation since the 1970s. In contrast, Attanasio, Low, and Sanchez-Marcos (2004) analyze the labor-force participation choices of three cohorts of American women (those born in the 1930s, 1940s, and 1950s), and conclude that a decline in the relative cost of children is the most likely explanation for participation changes. Yet other explanations for the rise in female employment are preferred by Greenwood, Seshadri, and Yorukoglu (2004) and Albanesi and Olivetti (2007) (improvements in household and medical technology) and Jones, Manuelli, and McGrattan (2003) (an exogenous narrowing of the gender gap).…”

Section: Related Literaturementioning

confidence: 99%

The Baby Boom and World War II: A Macroeconomic Analysis

Doepke¹,

Hazan

Maoz

2015

Review of Economic Studies

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We argue that one major cause of the U.S. postwar baby boom was the increased demand for female labor during World War II. We develop a quantitative dynamic general equilibrium model with endogenous fertility and female labor-force participation decisions. We use the model to assess the long-term implications of a one-time demand shock for female labor, such as the one experienced by American women during wartime mobilization. For the war generation, the shock leads to a persistent increase in female labor supply due to the accumulation of work experience. In contrast, younger women who turn adult after the war face increased labor-market competition, which impels them to exit the labor market and start having children earlier. In our calibrated model, this general-equilibrium effect generates a substantial baby boom followed by a baby bust, as well as patterns for agespecific labor-force participation and fertility rates that are consistent with U.S data.

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Explaining Changes in Female Labor Supply in a Life-Cycle Model

Cited by 379 publications

References 37 publications

Taxing women: A macroeconomic analysis

Taxing women: A macroeconomic analysis

The trend in female labour force participation: what can be expected for the future?

The Baby Boom and World War II: A Macroeconomic Analysis

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