Taxes, subsidies and gender gaps in hours and wages

Bibliographic Data

ID9725939
AuthorsRobert Duval‐Hernández (Open University of Cyprus, IZA and CIDE Cyprus), Robert Hernandez (0000-0002-1875-4594, Open University of Cyprus), Lei Fang (0000-0002-2582-4845, Federal Reserve Bank of Atlanta United States), L Rachel Ngai (London School of Economics and Political Science, corresponding author)
Year2023
Volume90
Issue358
Pages373-408
Publication date2023-04-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEconomica (JOURNAL)
Journal identifiersISSN: 0013-0427 • E-ISSN: 1468-0335
PublisherWiley (PUBLISHER • GB)
DOI10.1111/ecca.12466
OpenAlexW3185573485
LanguageEN
Citations received1
References cited38

Using microdata from 17 OECD countries, this paper documents a negative cross‐country correlation between gender gaps in market hours and wages. We find that the cross‐country differences in market hours are mostly accounted for by female market hours and the size of the sector that produces close substitutes to home production. We quantify the role played by taxes and family care subsidies on the two gender gaps in a multi‐sector model with home production. Higher taxes and lower subsidies reduce the marketization of home production, leading to lower market hours. The effect is largely on women because both home production and the production of its market substitutes are female‐intensive. The larger fall in female market hours reduces relative female labour supply, contributing to a higher female to male wage ratio

Census · China · Demographic economics · Economics · Labour economics · Market economy · Marketization · Microdata (statistics) · Population · Production (economics) · Subsidy · Wage · Gender, Labor, and Family Dynamics · Labor market dynamics and wage inequality · Work-Family Balance Challenges

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