DP13769 Economic incentives, home production and gender identity norms

Author(s): Andrea Ichino, Martin Olsson, Barbara Petrongolo, Peter Skogman Thoursie
Publication Date: May 2019
Date Revised: December 2019
Keyword(s): gender gaps, gender identity, Home Production, taxes
JEL(s): D13, H24, J22
Programme Areas: Labour Economics, Public Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=13769

A natural test of the importance of gender norms requires to observe changes in individual behavior after a change in the market penalty for adopting those norms. In this paper we infer the role of gender identity norms from the reallocation of childcare across parents, following changes in their relative wages. By exploiting variation from a Swedish tax reform, we estimate the elasticity of substitution in parental childcare for the whole population and for demographic groups potentially adhering to differently binding norms. We find that immigrant, married and male breadwinner couples, as well as couples with a male first-born, react more strongly to tax changes that induce a more traditional allocation of spouses' time, while the respective counterpart couples react more strongly to tax changes that induce a more egalitarian division of labor