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Comments on “Care Work”

Comments on “Care Work”. Jishnu Das (DECRG). The Question. How should we provide care for children and the elderly Is there a role for public policy. The implicit subsidy. Low female labor force participation + limited set of jobs that they are employed in This means

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Comments on “Care Work”

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Presentation Transcript

  1. Comments on “Care Work” Jishnu Das (DECRG)

  2. The Question • How should we provide care for children and the elderly • Is there a role for public policy

  3. The implicit subsidy • Low female labor force participation + limited set of jobs that they are employed in • This means • A wage discount in the jobs that are “socially acceptable” (Examples: US, Pakistan) • A wage discount in care work at home (Examples: Colombia, Pakistan, India) • Both can/will change with increasing female lfp

  4. The Question (again) • What parts of “care work” are contractible? • If fully contractible, removing the market distortion from segmented labor markets should improve things • Income effect from mothers working outside greater than substitution effect of maternal presence • But, empirical evidence + theory suggests that contractibility may be an issue (can’t buy me love)

  5. Implications for bank work • Get that labor agenda started again… • For instance, time-use data on what women are doing is key to understanding these issues • Example

  6. Questions (again) • Policy: if 2 market failures are better than 1, then govt. may do good • (remove the market segmentation, but retain the credit constraint) • BUT • Where to intervene? Kids? Adults? Pre-School? • Multiple things going on • Lower fertility • Kids later in life • Demand for privacy • Migration • Father’s change (believe it or not) • Increased productivity at home (Time in the US with kids pretty much constant due to this + the one above)

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