Bank of Lithuania
November 16 14:00 - 15:00
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Having It All? Employment, Earnings and Children by Johanna Wallenius, Stockholm School of Economics.

Please register by sending an email to [email protected] with your full name, surname and university/work-place until 14th of November, 13:00.

Seminar language: English.

We study the effect of family policies on female employment, fertility and the gender wage gap. To this end, we develop a life cycle model of heterogeneous households featuring endogenous labor supply, human capital accumulation, fertility and home production. Our model is calibrated to Swedish data and institutions. The insights, however, are general. We find that human capital accumulation is important in accounting for the widening of the gender wage gap following children. Childcare subsidies promote maternal employment and fertility, but – depending on the size of the subsidy – this can be at the expense of aggregate hours. A subsidy on home goods increases female employment, but primarily later in life. Thus, it would not dampen the widening of the gender gap.

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Last update: 30-10-2018