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Parenthood and Labor Market Outcomes: Evidence from Chile

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Abstract

Throughout the pandemic Chile implemented a series of public health mandates restricting mobility and high social-contact activities with a goal of reducing disease spread. In this paper, we study the impact of one of these policies - central planner variation in school re-openings on labor market outcomes. We examine how access to supervised care for children in school affected mothers’ labor supply and show that mothers increased labor force participation anywhere from 2.6 to 21.0 percentage points (ppts) as schools re-opened. As mothers came back to the labor force, however, unplanned disruptions decreased their ability to stay actively engaged in work and increased their take up of leave from work, an artifact of unanticipated sick children and quarantine policies that particularly affected mothers who were secondary earners in the household. Conditional on being in the labor force, having a teenager buffered both mothers and fathers from work disruptions; parents were more likely to be actively working and less likely to be on leave. Our findings support a theory that parental labor supply is sensitivity to disruptions in the care of children but also depends on household composition and each parent’s role beyond gender. Policies that encourage consistent formalized systems of care and learning for children will not only benefit children, but also a second-earner’s ability to re-enter the labor force and advance at work.

Suggested Citation

  • Misty Heggeness & Ana Sofía León, 2023. "Parenthood and Labor Market Outcomes: Evidence from Chile," Opportunity and Inclusive Growth Institute Working Papers 075, Federal Reserve Bank of Minneapolis.
    • Handle: RePEc:fip:fedmoi:96531
    DOI: 10.21034/iwp.75
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    References listed on IDEAS

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    1. Pierre‐Loup Beauregard & Marie Connolly & Catherine Haeck & Tímea Laura Molnár, 2022. "Primary school reopenings and parental work," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(S1), pages 248-281, February.
    2. Heggeness, Misty L., 2020. "Improving child welfare in middle income countries: The unintended consequence of a pro-homemaker divorce law and wait time to divorce," Journal of Development Economics, Elsevier, vol. 143(C).
    3. Misty Heggeness & Palak Suri, 2021. "Telework, Childcare, and Mothers’ Labor Supply," Opportunity and Inclusive Growth Institute Working Papers 52, Federal Reserve Bank of Minneapolis.
    4. José Cristi & Carlos Madeira, 2023. "The effects of the job retention programme during the Covid pandemic on the Chilean firms and households," Applied Economics Letters, Taylor & Francis Journals, vol. 30(6), pages 766-771, March.
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    More about this item

    Keywords

    Gender; Cost of caregiving; Labor force participation; NPI policies;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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