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Parental Labor Supply: Evidence from Minimum Wage Changes
Journal of Human Resources ( IF 5.784 ) Pub Date : 2021-11-15 , DOI: 10.3368/jhr.1119-10540r2
Anna Godøy , Michael Reich , Jesse Wursten , Sylvia Allegretto

Declining labor force participation rates among less-educated individuals in the U.S. have been attributed to various causes, including skill-biased technical change, demand shocks induced by international competition, looser eligibility requirements for disability insurance, the opioid epidemic and the nature of child care and family leave policies. In this paper, we examine how the labor supply of parents of dependent children respond to minimum wage changes. We implement an event study framework and document a sharp rise in employment and earnings of parents after state minimum wage increases. We further show that these effects are concentrated among jobs that pay the minimum wage or slightly higher – high wage employment remains unaffected. Panel models find corresponding drops in welfare receipts, moreover, for single mothers, effects are larger for mothers of preschool age children. The results are consistent with a simple labor supply model in which means-tested transfers and fixed costs of work in the form of paid childcare create barriers to labor market entry for parents of dependent children. Minimum wage increases then enable higher rates of parental labor force participation, resulting in significant reductions in child poverty. We find no evidence of employment crowd-out among non-parents, suggesting potential overall welfare gains from higher minimum wages.

中文翻译:

父母劳动力供应:来自最低工资变化的证据

美国受教育程度较低的个人劳动力参与率下降的原因有多种,包括偏向技能的技术变革、国际竞争引发的需求冲击、残疾保险的资格要求放宽、阿片类药物流行和儿童保育的性质和探亲假政策。在本文中,我们研究了受抚养子女父母的劳动力供给如何应对最低工资的变化。我们实施了一个事件研究框架,并记录了州最低工资增加后父母的就业和收入急剧上升。我们进一步表明,这些影响集中在支付最低工资或略高工资的工作中——高工资就业仍然不受影响。面板模型发现福利收入相应下降,此外,对于单身母亲,对学龄前儿童的母亲影响更大。结果与简单的劳动力供应模型一致,在该模型中,经过经济状况调查的转移和以有偿儿童保育形式的固定工作成本为受抚养子女的父母进入劳动力市场设置了障碍。提高最低工资可以提高父母劳动力的参与率,从而显着减少儿童贫困。我们没有发现非父母就业排挤的证据,这表明更高的最低工资可能带来整体福利收益。提高最低工资可以提高父母劳动力的参与率,从而显着减少儿童贫困。我们没有发现非父母就业排挤的证据,这表明更高的最低工资可能带来整体福利收益。提高最低工资可以提高父母劳动力的参与率,从而显着减少儿童贫困。我们没有发现非父母就业排挤的证据,这表明更高的最低工资可能带来整体福利收益。
更新日期:2021-11-15
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