Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/176777 
Year of Publication: 
2018
Series/Report no.: 
SOEPpapers on Multidisciplinary Panel Data Research No. 962
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
This paper decomposes the differences in aggregate market hours between US and Europe across gender-skill groups and finds that low-skilled women are the biggest contributors to aggregate differences, with the exception of Nordic countries. We develop a model to account for the gender-skill differences in market hours across countries. Taxes, which reduce market hours in favor of leisure and home production, explain a substantial fraction of the differences in hours for Southern and Central European countries. Subsidized family care, which reduces home hours of women in favor of market hours, explains the different pattern of hours in Nordic countries. Low-skilled women are more responsive to policy because of their comparative advantage in producing home services and the corresponding market substitutes.
Subjects: 
Cross-country Differences in Market Hours
Home Production
Subsidies on Family Care
JEL: 
E24
E62
J22
Document Type: 
Working Paper

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