Cheti Nicoletti, Kjell G. Salvanes, Emma Tominey, 10 December 2017

Developed countries have seen substantial increases in the number of women who return to work after having a child. This is due to a host of well-researched factors, including tax credit incentives and increased availability of child care. This column analyses another factor determining mothers’ labour supply – the peer effects of women in their family. It finds that for each hour worked by a family member, women work up 30 minutes a week purely due to the peer effect. This finding is important for determining the direct and indirect effectiveness of policies encouraging women to work after having children.

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