In previous Chapters of my dissertation I found that reconciliation policies close the motherhood-employment gap, and that financial support policies increase this gap. Paid leave was also found to be more effective among higher educated women. These findings, as well as an increasing body of literature on stratified outcomes of family policies, may suggest that family policies that stimulate women’s employment may have the unintended consequence of increasing inequality between households.
On the other hand, the findings in Chapter 5 suggested that women’s earnings have a strong tendency to decrease inequality between households. Our analyses showed that family policy arrangements that facilitate women’s employment women contributed a larger share of total household earnings, and earnings inequality among women was relatively low. Indeed, it women’s earnings were found to attenuate inequality between households to a larger extent in countries with extensive reconciliation policies and limited financial support policies. Countries with family policy arrangements that facilitate women’s employment and consequently smaller earnings inequalities within households also contribute to smaller in- equalities between households.
The Chapter thus gave rise to the following proposition:
Family policy arrangements that facilitate smaller earnings inequality within households also reduce inequality between households.
The complete abstract of this Chapter reads:
This Chapter examines to what extent family policies have affected earnings inequality within and between coupled households. In Chapter 5 cross-country variation was found in the degree to which women’s earnings attenuate earnings inequality between households. In this Chapter we explain this variation with reconciliation policies and financial support policies. We used person-level data from the Luxembourg Income Study (LIS, 2013) on 572,222 coupled households, covering the period from 1981 to 2005 in 18 OECD countries. These data were combined with country-level data from the Comparative Maternity, Parental, and Childcare Database (Gauthier, 2010). In countries with extensive reconciliation policies women contributed a larger share of total household earnings, and earnings inequality among women was relatively low. In societies with extensive financial support policies, women contributed a smaller share to total household earnings, and inequality among the earnings of women was relatively high. Women’s earnings were found to attenuate inequality between households to a larger extent in countries with extensive reconciliation policies and limited financial support policies. Countries with family policy arrangements that facilitate women’s employment and consequently smaller earnings inequalities within households also contribute to smaller inequalities between households.
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This is a series on the 10 propositions that are part of my PhD dissertation. These propositions are a Dutch tradition to highlight key findings of a dissertation and some additional insights by the author. My dissertation is titled “Family Policy Outcomes: Combining Institutional and Demographic Explanations of Women’s Employment and Earnings Inequality in OECD countries, 1975-2005″ and I will defend my dissertation on January 10 2014. So, this series is also a count down. Find out more about my dissertation.
