The Social Multiplier and Labor Market Participation of Mothers

Maurin, Eric; Moschion, Julie

doi:10.1257/app.1.1.251

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American Economic Journal: Applied Economics: Vol. 1 No. 1 (January 2009)

AEJ: Applied Volume. 1, Issue 1 | left

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The Social Multiplier and Labor Market Participation of Mothers

Article Citation

Maurin, Eric, and Julie Moschion. 2009. "The Social Multiplier and Labor Market Participation of Mothers." American Economic Journal: Applied Economics, 1(1): 251-72.

DOI: 10.1257/app.1.1.251

Abstract

In France, as in the US, a mother's labor market participation is influenced by the sex composition of her two eldest siblings. This paper shows that it is also affected by the sex composition of the eldest siblings of the other mothers living in the same close neighborhood. Using the sex composition of neighbors' eldest siblings as an instrumental variable, we identify a significant elasticity of own labor market participation to neighbors' participation. We present supportive evidence by comparing the estimates under two regimes for family benefits (pre- and post-1994 reform) and using quarter of birth as an alternative instrument. (JEL J16, J22)

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Authors

Maurin, Eric (Paris School of Economics)
Moschion, Julie (Paris School of Economics)

JEL Classifications

J16: Economics of Gender; Non-labor Discrimination
J22: Time Allocation and Labor Supply

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