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Contribution Details

Type Working Paper
Scope Discipline-based scholarship
Title Money vs. time: family income, maternal labor supply, and child development
Organization Unit
  • Francesco Agostinelli
  • Giuseppe Sorrenti
  • English
Institution University of Zurich
Series Name Working paper series / Department of Economics
Number 273
ISSN 1664-7041
Number of Pages 76
Date 2018
Abstract Text We study the effect of family income and maternal hours worked on child development. Our instrumental variable analysis suggests different results for cognitive and behavioral development. An additional 1,000 USD in family income improves cognitive development by 4.4 percent of a standard deviation but has no effect on behavioral development. A yearly increase of 100 work hours negatively affects both outcomes by approximately 6 percent of a standard deviation. The quality of parental investment matters and the substitution effect (less parental time) dominates the income effect (higher earnings) when the after-tax hourly wage is below 13.50 USD. Results call for consideration of child care and minimum wage policies that foster both maternal employment and child development.
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Keywords Child development, family income, maternal labor supply, Kognitive Entwicklung, Verhaltensentwicklung, Arbeitsangebot, Mutter, Einkommen, Kinderbetreuung, Mindestlohn