Family

  • How does grandparent childcare affect labor supply?

    Childcare provided by grandparents helps young working mothers, but reduces the labor supply of older women

    Giulio Zanella, February 2017
    Older people in developed countries are living longer and healthier lives. A prolonged and healthy mature period of life is often associated with continued and active participation in the labor market. At the same time, active grandparents can offer their working offspring a free, flexible, and reliable source of childcare. However, while grandparent-provided childcare helps young parents (especially young mothers) overcome the negative effects of child rearing on their labor market participation, it can sometimes conflict with the objective of providing additional income through employment for older workers, most notably older women.
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  • Do childcare policies increase maternal employment?

    Subsidized childcare fosters maternal employment, but employment status, childcare quality, and availability matter

    Daniela Vuri, March 2016
    Women’s labor force participation has rapidly increased in most countries, but mothers still struggle to achieve a satisfactory work−life balance. Childcare allows the primary caregiver, usually the mother, to take time away from childrearing for employment. Family policies that subsidize childcare and increase its availability have different effects on female labor supply across countries. For policymakers to determine how well these policies work, they should consider that policy effectiveness may depend on country-specific pre-reform female employment and earnings, and childcare availability, costs, and quality.
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  • Do anti-discrimination policies work?

    A mix of policies could be the solution to reducing discrimination in the labor market

    Marie-Anne Valfort, May 2018
    Discrimination is a complex, multi-factor phenomenon. Evidence shows widespread discrimination on various grounds, including ethnic origin, sexual orientation, gender identity, religion or beliefs, disability, being over 55 years old, or being a woman. Combating discrimination requires combining the strengths of a range of anti-discrimination policies while also addressing their weaknesses. In particular, policymakers should thoroughly address prejudice (taste-based discrimination), stereotypes (statistical discrimination), cognitive biases, and attention-based discrimination.
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  • How does international trade affect household welfare?

    Households can benefit from international trade as it lowers the prices of consumer goods

    Beyza Ural Marchand, August 2017
    Imported products tend to have lower prices than locally produced ones for a variety of reasons, including lower labor costs and better technology in the exporting country. The reduced prices may lead to wage losses for individuals who work in the production of a local version of the imported item. On the other hand, lower prices may be beneficial to households if the cheaper product is in their consumption basket. These welfare gains through consumption, on average, are found to be larger in magnitude than the wage effect for some developing countries.
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  • Childcare subsidy policy: What it can and cannot accomplish

    What are the implications of childcare subsidies for care quality, family well-being, and child development?

    Erdal Tekin, July 2014
    Most public expenditure on childcare in the US 
is made through a federal program, the Child Care and Development Fund (CCDF), established as 
part of landmark welfare reform legislation in 1996. The main goal of the reform was to increase employment and reduce welfare dependence among low-income families. Childcare subsidies have been effective in enabling parents to work, but apparently at some cost to the well-being of parents and children.
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  • The determinants of housework time

    Boosting the efficiency of household production could have large economic effects

    Leslie S. Stratton, March 2015
    The time household members in industrialized countries spend on housework and shopping is substantial, amounting on average to about half as much time as is spent on paid employment. Women bear the brunt of this burden, a difference that is driven in part by the gender differential in wages. Efforts to reduce the gender wage gap and alter gendered norms of behavior should reduce the gender bias in household production time and reduce inefficiency in home production. Policymakers should also note the impact of tax policy on housework time and consider ways to reduce the distortions caused by sales and income taxes.
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  • Institutional long-term care and government regulation

    Focus on family and portable allowances to lower the costs of institutional long-term care while monitoring its quality

    Elena Stancanelli, August 2015
    The demand for institutional long-term care is likely to remain high in OECD countries, because of longer life expectancy and falling cohabitation rates of the elderly with family members. As shortages of qualified nurses put a cap on the supply of beds at nursing homes, excess demand builds. That puts upward pressure on prices, which may not reflect the quality of the services that are provided. Monitoring the quality of nursing home services is high on the agenda of OECD governments. Enlisting feedback from family visitors and introducing portable benefits might improve quality at little extra cost.
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  • Parental employment and children’s academic achievement

    Quality of parental time spent with children is more important than quantity

    Female labor market participation rates have increased substantially in many countries over the last decades, especially those of mothers with young children. This trend has triggered an intense debate about its implications for children’s well-being and long-term educational outcomes. The overall effect of maternal and paternal employment on children’s cognitive and educational attainment is not obvious: on the one hand, children may benefit from higher levels of family income, on the other hand, parental employment reduces the amount of time parents spend with their children.
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  • Fertility decisions and alternative types of childcare

    Relative costs and family characteristics determine the effectiveness of different forms of childcare

    Chiara Pronzato, September 2017
    Increasing population age and low fertility rates, which characterize most modern societies, compromise the balance between people who can participate in the labor market and people who need care. This is a demographic and social issue that is likely to grow in importance for future generations. It is therefore crucial to understand what factors can positively influence fertility decisions. Policies related to the availability and costs of different kinds of childcare (e.g. formal care, grandparents, childminders) should be considered and promoted after an evaluation of their effects on the probability of women having children.
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  • Intermarriage and the economic success of immigrants

    Who is the driving factor—the native spouses or the immigrants themselves?

    Olga K. Nottmeyer, June 2015
    Marriages between immigrants and natives (intermarriages) are often associated with economic success and interpreted as an indicator of social integration. Intermarried immigrant men are on average better educated and work in better paid jobs than nonintermarried immigrant men. In this context, native spouses could deliver valuable insights into the host country and provide business contacts. However, intermarriage may not be the driving factor of economic success but instead be its byproduct, as better education and personal characteristics could be both economically beneficial and increase the likelihood of meeting natives. Intermarriage might also be more “suspense-packed” (positively and negatively) and can thus be associated with an increase in severe stress and a higher risk of divorce.
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