Female Labor Supply, Human Capital Accumulation and Fertility
In this paper we study the effect of family policies on female employment, fertility and the gender wage gap. We are particularly interested in understanding why part-time employment is so prevalent in Sweden, despite heavily subsidized daycare, and the effect of this on the widening of the gender wage gap. We are also interested in understanding the role of home production, particularly the unequal division of home work across genders, in shaping women’s career paths. To this end, we develop a structural, life cycle model of heterogeneous households which features endogenous labor supply, endogenous human capital accumulation, endogenous fertility and home production.