Family and Labor Market Choices: Requirements to Guide Effective Evidence-Based Policy

Abstract

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. Terms of use: Documents in EconStor may Abstract:Microsimulation methods and models of labor market decisions have attracted a lot of attention as an approach to the assessment of consequences of family related policies in the area of labor market and fertility. We set these models in the context of relevant demographic theories and present them from the point of view of their potential as tool to guide effective policy making with the aim to reconcile the objectives of increasing female participation and fertility and reducing poverty levels among families with children. To develop an efficient and consistent institutional setup with the aim to target the above mentioned objectives it is essential to understand the role of policy in affecting these goals and in particular the interaction between the different measures.The discussion presented in this paper provides an overview of a particular type of approach to the analysis of policies with regard to these three goals, namely the use of microsimulation. We show the extent to which using microsimulation may inform the public debate on the degree of effectiveness of various policies, the difficulties faced by researchers in the area, and potential ways to address them. We pay special attention to the requirements in terms of research infrastructure which are essential to facilitate a comprehensive approach to evidence based policy making in this area.In the analysis we outline some key theories relating fertility and labor market outcomes from the demographic literature and discuss the interpretation of the economic model in this context. This in our view helps in understanding the advantages and limitations of the standard economic models of choice in these domains. The paper on the one hand offers a review of the existing literature on modeling of support for families with children and the resulting labor market and fertility outcomes using the micro-simulation approach. On the other hand, we discuss the research tools necessary for identification of key parameters determining the outcomes, thus allowing for assessment of policy measures. As we show all major assessments of implemented or planned policies require significant resources, both in the form of detailed data as well as complex microsimulation infrastructure.2 See, e.g. Blundell et al. (2000), , Haan and Myck (2007), Bargain et al. (2010). 4In Section 2 of this paper we provide a brief overview of the heterogeneity in female employment and fe...

Making work pay: increasing labour supply of secondary earners in low income families with children

“…First, the negative work incentives of in-work support concern second earners in couples (and not lone mothers). Second, the gender employment gaps in Poland, as in many other countries of Central and Eastern Europe (CEE), are strongly related to the demographic structure of the household and childcare responsibilities and are particularly visible among men and women with children (Myck, Kurowska & Kundera, 2013;Kurowska, Myck & Wrohlich, 2012). Myck et al, 2013;Myck et al, 2015).…”

The impact of an unconditional parental benefit on employment of mothers

“…It has also been shown that certain family policy instruments impose high marginal tax rates on secondary earners in couples (usually women) and therefore discourage them from taking up or resuming employment. These instruments include in-work family/child tax credits (Eissa and Hoynes, 2004; Brewer et al , 2006; Haan and Myck, 2007; Bar and Leukhina, 2009) and family benefits/allowances (Kornstad and Thoresen, 2007; Laroque and Salanié, 2008; for a review of other instruments see Kurowska et al , 2012).…”

Making Work Pay: Increasing Labour Supply of Secondary Earners in Low Income Families with Children

“…First, the negative work incentives of in-work support concern second earners in couples (and not lone mothers). Second, the gender employment gaps in Poland, as in many other countries of Central and Eastern Europe (CEE), are strongly related to the demographic structure of the household and childcare responsibilities and are particularly visible among men and women with children (Myck, Kurowska & Kundera, 2013;Kurowska, Myck & Wrohlich, 2012).…”