The Review of Economic Studies: Work in the home and the market
14 November 2011Alexander M. Gelber, author of a new Review of Economic Studies paper, writes on the OUPblog about the work choices made by single women, with and without children.
"When tax incentives draw single women into the labour force, what activities do they sacrifice? Do they spend less time enjoying leisure? Do they cut back on household chores? Do they give up time with their children?Over the past thirty years, US policymakers tried to increase participation of single mothers in the labour force by expanding the Earned Income Tax Credit and reforming the welfare system. One key motivation for reform was the perception that some single mothers were choosing to be idle and instead ought to contribute more productively to society by working. But did the policy reforms induce single mothers to shift from one productive activity – work at home – to another – work in the market? In a new paper published in the Review of Economic Studies, we find that the answer is “yes”: tax policy largely shifts single women between work at home and work in the market. Interestingly, however, when tax incentives draw them into the labour force, they may not cut much from their “quality time” with their children."
For the full blog post, visit: Work in the home and the market
Read the paper: Taxes and Time Allocation: Evidence from Single Women and Men
Published in The Review of Economic Studies, Advance Access, 10 November 2011.