Discussion paper

DP13769 Economic incentives, home production and gender identity norms

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

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Citation

Ichino, A, M Olsson, B Petrongolo and P Thoursie (eds) (2019), “DP13769 Economic incentives, home production and gender identity norms”, CEPR Press Discussion Paper No. 13769. https://cepr.org/publications/dp13769