Trapped at Home: The Effect of Mothers' Temporary Labor Market Exits on Their Subsequent Work Career

42 Pages Posted: 14 Jun 2012

See all articles by Nina Drange

Nina Drange

Statistics Norway

Mari Rege

University of Stavanger

Date Written: May 31, 2012

Abstract

This paper investigates how mothers’ decision to stay at home with young children affects their subsequent work careers. Identification is based on the introduction of the Cash-for-Care program in Norway in 1998, which increased mothers’ incentives to withdraw from the labor market when their child was one and two years old. Our estimates demonstrate that the program had effects on earnings and full-time employment even when the child was no longer eligible for Cash-for-Care at ages four and five. However, from age six, we can no longer see any effects. The effects seem to dissipate because most mothers remained attached to the labor force through part-time employment.

Keywords: female labor supply, family, home production, parental leave

JEL Classification: J130, J210, J240

Suggested Citation

Drange, Nina and Rege, Mari, Trapped at Home: The Effect of Mothers' Temporary Labor Market Exits on Their Subsequent Work Career (May 31, 2012). CESifo Working Paper Series No. 3833, Available at SSRN: https://ssrn.com/abstract=2084072

Nina Drange

Statistics Norway ( email )

Mari Rege (Contact Author)

University of Stavanger ( email )

PB 8002
Stavanger, 4036
Norway

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