Gender Economics Seminar, at the Swedish Institute for Social Research (SOFI).

Lena Hensvik from Uppsala University presents Gender wage gaps and household decisions: Evidence from a promotion reform

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Abstract

This paper studies the impact of a substantial change in household relative wage on the reallocation of childcare time across parents. Our empirical strategy takes advantage of a promotion program for teachers, which led to a sudden and persistent 20 percent wage increase for the promoted spouse and a 32 percent decrease in the couple's gender wage gap (reflecting the higher promotion rate of the female spouses). Our findings suggest that female promotions lead to a more even division of childcare. Overall, these findings suggest that improved career opportunities for women can improve gender equality in the household.