Having it all, for all: child-care subsidies and income distribution reconciled

Autor: Kerstin Roeder, Helmuth Cremer, Francesca Barigozzi
Přispěvatelé: Toulouse School of Economics (TSE), Université Toulouse 1 Capitole (UT1), Université Fédérale Toulouse Midi-Pyrénées-Université Fédérale Toulouse Midi-Pyrénées-École des hautes études en sciences sociales (EHESS)-Centre National de la Recherche Scientifique (CNRS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Université de Bologne, University of Augsburg [Augsburg], ANR-17-EURE-0010,Investissements d'Avenir program,ANR-17-EURE-0010, University of Augsburg (UNIA), ANR-17-EURE-0010,CHESS,Toulouse Graduate School défis en économie et sciences sociales quantitatives(2017), Francesca Barigozzi, Helmuth Cremer, Kerstin Roeder
Jazyk: angličtina
Rok vydání: 2020
Předmět:
Organizational Behavior and Human Resource Management
Economics and Econometrics
Full-time
Social group
Income distribution
0502 economics and business
050602 political science & public administration
Economics
JEL: J - Labor and Demographic Economics/J.J1 - Demographic Economics/J.J1.J16 - Economics of Gender • Non-labor Discrimination
050207 economics
10. No inequality
B- ECONOMIE ET FINANCE
050208 finance
Child care subsidies
JEL: H - Public Economics/H.H2 - Taxation
Subsidies
and Revenue/H.H2.H23 - Externalities • Redistributive Effects • Environmental Taxes and Subsidies

05 social sciences
Social norms
Child care and women’s career choices
Child care subsidies
Redistribution

1. No poverty
JEL: J - Labor and Demographic Economics/J.J2 - Demand and Supply of Labor/J.J2.J22 - Time Allocation and Labor Supply
Subsidy
Redistribution (cultural anthropology)
[SHS.ECO]Humanities and Social Sciences/Economics and Finance
0506 political science
Social norms
Incentive
Child care and women’s career choices
8. Economic growth
Redistribution
JEL: D - Microeconomics/D.D1 - Household Behavior and Family Economics/D.D1.D13 - Household Production and Intrahousehold Allocation
Demographic economics
Inefficiency
Externality
Zdroj: Journal of Economic Behavior & Organization
Journal of Economic Behavior & Organization, 2020, 176, pp.188-211. ⟨10.1016/j.jebo.2020.05.007⟩
ISSN: 1879-1751
Popis: We study the design of child-care policies when redistribution matters. Traditional mothers provide some informal child care, whereas career mothers purchase full time formal care. The sorting of women across career paths is endogenous and shaped by a social norm about gender roles in the family. Via this social norm traditional mothers’ informal child care imposes an externality on career mothers, so that the market outcome is inefficient. Informal care is too large and the group of career mothers is too small so that inefficiency and gender inequality go hand in hand. In a first-best world redistribution across couples and efficiency are separable. Redistribution is performed via lump-sum transfers and taxes which are designed to equalize utilities across all couples. The efficient allocation of child care is obtained by subsidizing formal care at a Pigouvian rate. However, in a second-best setting, a trade-off between efficiency and redistribution emerges. The optimal uniform subsidy is lower than the “Pigouvian” level. Conversely,under a nonlinear policy the first-best “Pigouvian” rule for the (marginal) subsidy on informal care is reestablished. While the share of high career mothers continues to be distorted downward for incentive reasons, this policy is effective in reconciling the objectives of reducing the child care related inefficiency and achieving a more equal income distribution across couples. Our results continue to hold when the norm is defined within the mothers’ social group, rather than being based on the entire population.
Databáze: OpenAIRE