Women's career choices, social norms and child care policies

• Published in: Journal of public economics Vol. 168; pp. 162 - 173
• Main Authors: Barigozzi, Francesca, Cremer, Helmuth, Roeder, Kerstin
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01.12.2018
• Subjects: Child care subsidies; Child-care; Parental leave; Social norms; Women quotas; Women's career choices; Women quotas; Parental leave; D13; Women's career choices; H23; Child care subsidies; J22; Child-care; J16; Social norms
• ISSN: 0047-2727; 1879-2316
• DOI: 10.1016/j.jpubeco.2018.10.004

Our model explains the observed gender-specific patterns of career and child-care choices through endogenous social norms. We study how these norms contribute to the emergence of a gender wage gap. We show that via the social norm a couple's child-care and career choices impose an externality on other couples, so that the laissez-faire is inefficient. We use our model to study the design and effectiveness of three commonly used policies. We find that child-care subsidies and women quotas can be effective tools to mitigate or eliminate the externality. Parental leave, however, may even intensify the externality and decrease welfare. •We explain the observed gender patterns of career and child care choices through endogenous social norms (SNs).•SNs contribute to the emergence of a gender wage gap.•The laissez-faire is inefficient: via the SN a couple's child care and career choices create an externality.•Child care subsidies and women quotas are effective remedies.•Parental leave may intensify the externality but makes career mothers' child care choices more flexible.