The Economic Consequences of Family Policies: Lessons from a Century of Legislation in High-Income Countries

Working Paper: NBER ID: w23051

Authors: Claudia Olivetti; Barbara Petrongolo

Abstract: We draw lessons from existing work and our own analysis on the effects of parental leave and other interventions aimed at aiding families. The outcomes of interest are female employment, gender gaps in earnings and fertility. We begin with a discussion of the historical introduction of family policies ever since the end of the nineteenth century and then turn to the details regarding family policies currently in effect across high-income nations. We sketch a framework concerning the effects of family policy to motivate our country- and micro-level evidence on the impact of family policies on gender outcomes. Most estimates of the impact of parental leave entitlement on female labor market outcomes range from negligible to weakly positive. There is stronger evidence that spending on early education and childcare increases labor force participation of women and reduces gender gaps.

Keywords: Family Policies; Parental Leave; Female Employment; Gender Gaps; Fertility

JEL Codes: J13; J16; J18


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
Parental leave entitlement (J22)Female labor market outcomes (J49)
Increased spending on early education and childcare (H52)Female labor force participation (J21)
Increased spending on early education and childcare (H52)Reduced gender gaps in earnings (J79)
Parental leave duration (J22)Female employment (J21)
Family policies (J12)Gender equity (J16)
Family policies (J12)Women's career progression (J62)
Social norms and economic conditions (Z13)Effects of family policies (J12)

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