Journal of Economic Perspectives

ISSN 0895-3309 (Print) | ISSN 1944-7965 (Online)

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

Claudia Olivetti
Barbara Petrongolo

vol. 31, no. 1, Winter 2017

(pp. 205–30)

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Abstract

By the early 21st century, most high-income countries have put into effect a host of generous and virtually gender-neutral parental leave policies and family benefits, with the multiple goals of gender equity, higher fertility, and child development. What have been the effects? Proponents typically emphasize the contribution of family policies to the goals of gender equity and child development, enabling women to combine careers and motherhood, and altering social norms regarding gender roles. Opponents often warn that family policies may become a long-term hindrance to women's careers because of the loss of work experience and the higher costs to employers that hire women of childbearing age. We draw lessons from existing work and our own analysis on the effects of parental leave and other interventions aimed at aiding families. We present country- and micro-level evidence on the effects of family policy on gender outcomes, focusing on female employment, gender gaps in earnings, and fertility. Most estimates range from negligible to a small positive impact. But the verdict is far more positive for the beneficial impact of spending on early education and childcare.

Citation

Olivetti, Claudia, and Barbara Petrongolo. 2017. "The Economic Consequences of Family Policies: Lessons from a Century of Legislation in High-Income Countries." Journal of Economic Perspectives, 31 (1): 205–30. DOI: 10.1257/jep.31.1.205

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JEL Classification

J12 Marriage; Marital Dissolution; Family Structure; Domestic Abuse
J13 Fertility; Family Planning; Child Care; Children; Youth
J16 Economics of Gender; Non-labor Discrimination
J18 Demographic Economics: Public Policy
K36 Family and Personal Law
N30 Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: General, International, or Comparative
N40 Economic History: Government, War, Law, International Relations, and Regulation: General, International, or Comparative

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