Kids or courses? Gender differences in the effects of active labor market policies

Abstract

We investigate active labor market programs in Austria. We find only small effects, if any, for most of the programs. However, the programs may have unintended consequences for women. In particular for younger women, a key effect of the programs and one reason for the male-female effect differential that is observed in the literature is to reduce or postpone pregnancies and to increase their attachment to the labor force. Furthermore, the variables capturing pregnancies and times of parental leave play a key role in removing selection bias.

Flexibility at a cost – Should governments stimulate tertiary education for adults?

“…4 Changes which are expected may also affect educational investments, in particular child-rearing responsibilities for females. Thus, the decision to have a child may make AE enrolment less likely (Lechner and Wiehler 2011). In other cases, mothers' time constraints are relaxed as children grow older (e.g., begin day care), and it has been documented that AE enrolment is relatively frequent before returning to the labor market (Stenberg 2007, p15).…”

“…First, AE could be postponed or altogether rejected by the decision to have a child (Lechner and Wiehler 2011).…”

Sensitivity of matching-based program evaluations to the availability of control variables

“…The most relevant cases are probably women's fertility decisions, the main determinants of which would have to be captured. In particular, Lechner and Wiehler (2010) show that program participation and becoming pregnant during unemployment are both attractive options for women. For men alternative time use may be less important because institutions provide strong incentives to leave unemployment, making the leisure value of unemployment less relevant.…”

“…With the exception of the linked firm information which have become available in Germany only recently, administrative data in Germany are very similar to those available in Switzerland (see Gerfin and Lechner, 2002) and Austria (see Lechner and Wiehler, 2010). However, the data used in these studies are less informative with respect to information regarding health and job search (characteristics of job looked for, vacancy referrals, compliance with benefit conditions).…”

Birth spacing, human capital, and the motherhood penalty at midlife in the United States

“…Fourth, I examined the possibility that becoming unemployed may induce fertility, in line with the findings of Lechner and Wiehler (2011) for Austria. I find no evidence that being currently unemployed or being unemployed in the past year is positively associated with a second birth.…”