Taxing Families: The Impact of Child-related Transfers on Maternal Labor Supply (PDF)
Revise & resubmit at AEJ: Macro
The employment rate of married women with and without pre-school children varies substantially across countries. To what extent can child-related transfers account for this variation? I develop a life-cycle model in which married couples jointly decide their labor supply, female human capital evolves endogenously, and some couples have access to grandparental childcare. I show that child-related transfers can explain most of the variation in the employment rates of married women, even after taking the labor income tax treatment and cross-country variation in childcare fees into account.
Bundling Time and Goods: Implications for Hours Dispersion (PDF)
We document large dispersion in hours worked in the cross-section. We account for this fact using a model in which households combine market inputs and time to produce a set of non-market activities. To estimate the model, we create a novel data set that pairs market inputs and time use data at the activity level. We employ data from the Consumer Expenditure Survey and the American Time Use Survey, respectively. The estimated model can account for a large fraction of the dispersion of hours worked in the data. The large substitution between market inputs and time within an activity, for a sizable number of activities is key to our results. We show that models missing these features can only generate a third of the observed hours dispersion.
Work in Progress
Rising Cohabitation and Child Development (Poster)
Cohabitation rates of couples without children have steadily increased in the U.S. over the past 50 years. Yet, cohabitation rates of couples with small children have only increased for the less educated. What explains this differential rise in cohabitation rates by education and what are the implications for child investment and child outcomes? We show empirically that cohabiting women experience smaller childbirth penalties, work more in the labor market, and spend less time with their children as compared to married women. Subsequently, their children are less likely to obtain a college degree. To rationalize these facts, we build an overlapping generations model of marriage, cohabitation, and child development. Parents are altruistic towards their children and invest time and goods into their development. This, in turn, increases the probability that a child completes college. Couples can choose to separate in every period but married couples pay a divorce cost. Assets are split equally between spouses if couples were married prior to separation, but not if spouses previously cohabited. The model matches differences in hours worked, time, and money invested in children between married and cohabiting women. A comparison of the 1975 and 2015 steady states reveals that changes in the gender wage gap and the college premium are important drivers of the rise in cohabitation among less educated women with children over this period.
Patents and Economic Growth
The Political Economy of Laws to "Protect" Women
The Returns to Mobility and Job Search for Young Workers
joint with Hanna Wang