Working Paper: CEPR ID: DP16149
Authors: Barbara Boelmann; Anna Raute; Uta Schoenberg
Abstract: We investigate the role of cultural norms in shaping women’s labor supply decisions after childbirth. Specifically, we are interested in the interplay between childhood socialization and adulthood environment. To that end, we leverage the setting of the German reunification when East Germany’s gender egalitarian culture induced by socialism and West Germany’s more traditional culture were brought together. We find that East German gender norms are persistent whereas West German ones are not. West German mothers adjust their behavior to that of their East German peers not only when immersed in East German environment but even after returning to the West.
Keywords: cultural transmission; social norms; maternal labor force participation; German reunification
JEL Codes: J1; J2; Z1
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| East German mothers (D13) | return to work earlier (J26) |
| East German mothers (D13) | work longer hours (J29) |
| West German mothers (D13) | adapt post-birth labor supply behavior to East German mothers (J49) |
| East German mothers (D13) | recover 70% of pre-birth earnings (J17) |
| West German mothers (D13) | recover 45% of pre-birth earnings (J17) |
| East German colleagues (F55) | accelerate return to work for West German mothers (J29) |
| 10 percentage point increase in East German employment share (J68) | 2 percentage point increase in West German mothers' employment probability (1 year post-birth) (J19) |
| 10 percentage point increase in East German employment share (J68) | 16 percentage point increase in West German mothers' employment probability (4 years post-birth) (J19) |