Perspective article: the impact of Nordic countries' family friendly policies on employment, wages, and children

The Nordic countries at the same time exhibit a remarkably high participation rate of mothers and a more moderate decline in fertility rates compared to other Western countries. This has been attributed to the fact that the welfare state model and, especially, the family friendly policies chosen in...

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Bibliographic Details
Published in:Review of economics of the household 2008-03, Vol.6 (1), p.65-89
Main Authors: Gupta, Nabanita Datta, Smith, Nina, Verner, Mette
Format: Article
Language:English
Subjects:
Child care
Child development
Children & youth
Cognition & reasoning
Cognitive ability
Economic analysis
Economics
Economics and Finance
Elternzeit
Employment
Employment policies
Familienpolitik
Families & family life
Family income
Family leave
Females
Fertility
Frauenerwerbstätigkeit
Gender equity
Households
International
Kinderbetreuung
Labor Economics
Labor force
Labor market
Labor supply
Maternity & paternity leaves
Microeconomics
Mothers
Nordeuropa
Parental rights
Perspective Article
Population Economics
Social Sciences
Studies
Taxation
Wages & salaries
Wirkungsanalyse
Wirtschaftspolitik
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Summary:The Nordic countries at the same time exhibit a remarkably high participation rate of mothers and a more moderate decline in fertility rates compared to other Western countries. This has been attributed to the fact that the welfare state model and, especially, the family friendly policies chosen in the Nordic countries are unique. In this paper we evaluate the impact of Nordic countries’ family friendly policies on employment, wages and children’s well-being. We demonstrate that, although the ‘Nordic model’ has been successful in boosting female employment, it is a costly solution. Furthermore, family-friendly policies mainly directed towards giving mothers the right to be on long paid maternal leave have adverse effects on women’s wages with consequences for gender equality. Indeed, extensive family-friendly schemes may even have created a ‘system-based glass ceiling’ hindering women’s career progression. There is no evidence however of a trade-off between family-friendly policies and family welfare as effects on child development and children’s well-being of publicly provided child-care are found to be modest or even positive.
ISSN:1569-5239
1573-7152
DOI:10.1007/s11150-007-9023-0