Female Education and Employment: A Waste of Talent

Econpubblica Working Paper No. 134

28 Pages Posted: 5 Feb 2009

See all articles by Alessandra Casarico

Alessandra Casarico

Bocconi University - Department of Policy Analysis and Public Management; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Paola Profeta

Bocconi University

Date Written: October 5, 2008

Abstract

We develop a general equilibrium OLG growth model where women are heterogeneous with respect to the child care costs they bear, there is imperfect information along this dimension and education decisions are endogenous. We show that there is a number of women who have invested in education and find it profitable not to enter the labor market after giving birth to a baby. Their non-participation generates a waste of talent, since the effective output is lower than the potential one as determined by human capital investment. We determine the growth rate of human capital and output and analyze how they depend on the institutional and cultural environment. As a characterization of the institutional environment we study a tax-transfer scheme that can support the education and participation decision and analyze its emergence in a political game. We show that this policy has positive repercussions on growth.

Keywords: child care costs, asymmetric information, growth, tax-transfer scheme, majority voting.

JEL Classification: J16, J24

Suggested Citation

Casarico, Alessandra and Profeta, Paola, Female Education and Employment: A Waste of Talent (October 5, 2008). Econpubblica Working Paper No. 134. Available at SSRN: https://ssrn.com/abstract=1338046 or http://dx.doi.org/10.2139/ssrn.1338046

Alessandra Casarico (Contact Author)

Bocconi University - Department of Policy Analysis and Public Management ( email )

Via Roentgen 1
Milan, 20136
Italy

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, DE-81679
Germany

Paola Profeta

Bocconi University ( email )

Milan, MI
Italy

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