@techreport{MuellerNeumannWrohlich2019,
  type      = {Working Paper},
  author    = {M{\"u}ller, Kai-Uwe and Neumann, Michael and Wrohlich, Katharina},
  title     = {Labor supply under participation and hours constraints},
  series = {CEPA Discussion Papers},
  journal   = {CEPA Discussion Papers},
  number    = {3},
  issn      = {2628-653X},
  doi       = {10.25932/publishup-42765},
  url       = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-427656},
  pages     = {50},
  year      = {2019},
  abstract  = {The paper extends a static discrete-choice labor supply model by adding participation and hours constraints. We identify restrictions by survey information on the eligibility and search activities of individuals as well as actual and desired hours. This provides for a more robust identification of preferences and constraints. Both, preferences and restrictions are allowed to vary by and are related through observed and unobserved characteristics. We distinguish various restrictions mechanisms: labor demand rationing, working hours norms varying across occupations, and insufficient public childcare on the supply side of the market. The effect of these mechanisms is simulated by relaxing different constraints at a time. We apply the empirical frame- work to evaluate an in-work benefit for low-paid parents in the German institutional context. The benefit is supposed to increase work incentives for secondary earners. Based on the structural model we are able to disentangle behavioral reactions into the pure incentive effect and the limiting impact of constraints at the intensive and extensive margin. We find that the in-work benefit for parents substantially increases working hours of mothers of young children, especially when they have a low education. Simulating the effects of restrictions shows their substantial impact on employment of mothers with young children.},
  language  = {en}
}
@techreport{MuellerWrohlich2019,
  type      = {Working Paper},
  author    = {M{\"u}ller, Kai-Uwe and Wrohlich, Katharina},
  title     = {Does subsidized care for toddlers increase maternal labor supply?},
  series = {CEPA Discussion Papers},
  journal   = {CEPA Discussion Papers},
  number    = {9},
  issn      = {2628-653X},
  doi       = {10.25932/publishup-42772},
  url       = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-427727},
  pages     = {50},
  year      = {2019},
  abstract  = {Expanding public or publicly subsidized childcare has been a top social policy priority in many industrialized countries. It is supposed to increase fertility, promote children's development and enhance mothers' labor market attachment. In this paper, we analyze the causal effect of one of the largest expansions of subsidized childcare for children up to three years among industrialized countries on the employment of mothers in Germany. Identification is based on spatial and temporal variation in the expansion of publicly subsidized childcare triggered by two comprehensive childcare policy reforms. The empirical analysis is based on the German Microcensus that is matched to county level data on childcare availability. Based on our preferred specification which includes time and county fixed effects we find that an increase in childcare slots by one percentage point increases mothers' labor market participation rate by 0.2 percentage points. The overall increase in employment is explained by the rise in part-time employment with relatively long hours (20-35 hours per week). We do not find a change in full-time employment or lower part-time employment that is causally related to the childcare expansion. The effect is almost entirely driven by mothers with medium-level qualifications. Mothers with low education levels do not profit from this reform calling for a stronger policy focus on particularly disadvantaged groups in coming years.},
  language  = {en}
}