The Lisbon Process and European Women at Work

Political Economy and Social Policy of Western Europe

Indiana University, Bloomington

November 11, 2005

Tito BoeriBocconi University and Fondazione Debenedetti, Milan

Outline

• Some stylized facts

• Lisbon and Beyond

• How can the Lisbon strategy be improved? Who should do what?

Outline

• The stylized facts

• Lisbon and Beyond

• How can the Lisbon strategy be improved? Who should do what?

The stylized facts

• Decline in the gender employment gap

• Still large gender wage gap

• Larger wage gaps for older cohorts

Decline in gender employment gapFemale participation rate in European countries

Male participation rate in European countries

Evolution of the gender wage ratio

0102030405060708090

100

per

cent 1985

1998

Larger wage gaps for older cohorts

Relative female/male hourly earnings by age group

0

20

40

60

80

100

120

per

cen

t

age 25-34 age 45-54

Outline

• The stylized facts

• Lisbon and Beyond

• How can the Lisbon strategy be improved? Who should do what?

Catching up with Lisbon?

0

10

20

30

40

50

60

70

80

90

Female Overall

Female Target Overall Target

Womenization of labour force:

Risks

1. More competition: women vs men for a historically given number of jobs

2. Less time to childcare

3. Decrease of fertility rate

1. More competition women vs men for a historically given number of jobs

Real Risk?

No, sooner or later women at work become complementary to men employment

2. Less time to childcare

Employment rate for women and average family day care spending per employed woman

Real Risk?

3. Decrease of fertility rates

Women’s employment rates and fertility in Europe

Real Risk?

Possible interpretation:

• Changes in social norms towards working mothers

• Specific social policies:• Greater availability of childcare

• Greater opportunities fo flexible work

Positive relationship between participation and fertility

Proportion of children using childcare.

Childcare availability and fertility

Job flexibility and fertility

Social customs: reported reasons for low use of formal childcare in Italy

Should mothers stay at home?In your opinion, what should mothers of young children do?

0

10

20

30

40

50

60

70

80

Leave temporarily the labour market to lookafter their children full time, until they are 2

years old?

Go back to work as soon as possible aftermotherhood and leave children (also under 2

years old) to private or public childcare ?

Don't know

All respondents Only women Only families with children

Men, rich, low-educated and housewives want mothers to stay at home

Percentage change in the probability of preferring full time care giver mothers

-0.2 -0.15 -0.1 -0.05 0 0.05 0.1 0.15

Men

housewife

children in the family

third level education

primary level education

rich

In order to go to Lisbon, we should…In your opinion, which of the following initiatives would be more useful to mothers

with children up to 2 years old?

0

5

10

15

20

25

30

35

40

45

A longer maternity leave(also for temporary

contracts)

More possibilities to workpart-time

Employer-providedkindergarten

Vouchers for payingkindergarten

More and better kindergarten

All respondents Only women Only families with children

How much would you pay for improving quality and quantity of kindergarten availability for families with children up to 2 years old?

0

10

20

30

40

50

60

Nothing, Idon't thinkthis is auseful

service

Nothing,because I'm

notinterested inthis matter

Less than50 euros

from 50 to100 euros

From 100 to200 euros

From 200 to300 euros

From 300 to400 euros

From 400 to500 euros

From 500 to1000 euros

more than1000 euros

All respondents Only women Only families with children

Private provision? Affordable?Mothers of young children should leave them to: private kindergarten

0

10

20

30

40

50

60

70

from 1033 to 1549 euros/month from 1549 to 2066 euros/month more than 2066 euros/month

All respondents Only women Only families with children

Conclusion

• It is mainly preferences!• Preferences may change, but not that

rapidly • Young today do not think much differently

than older people; it will take a generation for preferences to change?

• Research on social norms: men with working mothers are more likely to be married to working women….

What to do meanwhile to reduce the work/children trade-off?

• Extension of public childcare may be less important than

- Extended m(p)aternity leave

- Flexibility in hours also for part-timers

- Kindergarten in firms

- Childcare vouchers for poor families

- and….