Women's Career Choices, Social Norms and Child Care Policies

36 Pages Posted: 22 Jan 2017

See all articles by Francesca Barigozzi

Francesca Barigozzi

University of Bologna - Department of Economics

Helmuth Cremer

University of Toulouse (GREMAQ & IDEI); Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute)

Kerstin Roeder

Ludwig Maximilian University of Munich (LMU); University of Augsburg

Multiple version iconThere are 3 versions of this paper

Date Written: January 2017

Abstract

Our model explains the observed gender-specific patterns of career and child care choices through endogenous social norms. We study how these norms interact with the gender wage gap. We show that via the social norm a couple's child care and career choices impose an externality on other couples, so that the laissez-faire is inefficient. We use our model to study the design and effectiveness of three commonly used policies. We find that child care subsidies and women quotas can be effective tools to mitigate or eliminate the externality. Parental leave, however, may even intensify the externality and decrease welfare.

Keywords: social norms, child care, women's career choices, women quotas, child care subsidies, parental leave

JEL Classification: D13, H23, J16, J22

Suggested Citation

Barigozzi, Francesca and Cremer, Helmuth and Roeder, Kerstin, Women's Career Choices, Social Norms and Child Care Policies (January 2017). IZA Discussion Paper No. 10502, Available at SSRN: https://ssrn.com/abstract=2903124

Francesca Barigozzi (Contact Author)

University of Bologna - Department of Economics ( email )

P.zza Scaravilli 2
40126 Bologna, 40126
Italy

Helmuth Cremer

University of Toulouse (GREMAQ & IDEI) ( email )

Toulouse, 31000
France
+33 1 6112 8606 (Phone)
+33 1 6112 8637 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Kerstin Roeder

Ludwig Maximilian University of Munich (LMU) ( email )

Geschwister-Scholl-Platz 1
Munich, DE Bavaria 80539
Germany

University of Augsburg ( email )

Universitätsstr. 2
Augsburg, 86159
Germany

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