Involuntary Part-time Work and Optimal Division of the Parental Allowance
Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Women using the majority of the parental allowance has been established as one of the contributing factors to the Swedish gender wage gap, but what determines how the parental allowance is divided in a couple? This thesis constructs a model of involuntary part-time work amongst women, to see if and how this particular aspect might inuence a couple's optimal use of parental allowance. The interaction effects of these two features on the Swedish labor market has not yet been considered in the vast literature that investigates the impact of fertility on female labor supply. The optimal parental leave division under varying circumstances is predicted, employing a unitary household model and the results indicate that the group taking the least days of parental allowance of all women is the part-time unemployed. This could be explained by work-preferences being a stronger determinant in favor of the decision to take parental leave than economic incentives, and that the parental allowance decision is the only opportunity to inuence the intensive margin of their labor supply in the model. Thus, part-time unemployed women are more likely to deviate from the social norm of women using the majority of parental allowance.
Place, publisher, year, edition, pages
Parental leave, Involuntary part-time, Underemployment
IdentifiersURN: urn:nbn:se:uu:diva-254632OAI: oai:DiVA.org:uu-254632DiVA: diva2:819092
Laun, Tobias, Postdoktor
Bengtsson, Niklas, Biträdande universitetslektor