Macroeconomics and family conciliation: The economic impact of childcare

María José Bosch, Carlos J. García, Marta Manríquez, Gabriel Valenzuela

Research output: Contribution to journalScientific reviewpeer-review

2 Scopus citations

Abstract

Background: Chile is a paradoxical case in its economic performance in recent decades. Although this country has implemented significant pro-market modernization reforms, it has an unexpectedly low female participation rate, wasting a vital source of economic growth. Several studies indicate that the cause of this low female labor participation in Chile would be a low conciliation between labor and family life. This experience is an important lesson for other developing economies that want to implement similar reforms. Methodology: In this article, we estimate a general equilibrium model by using Bayesian econometrics to quantify the effects of work-family conciliation at the aggregated level, through the effect of childcare. Results: Taking the case of Chile, we estimate important gains in increasing conciliation levels due to an increase in productivity rather than an increase in the labor supply. Conclusions: The main economic policy consequence for other developing or emerging economies is that higher levels of conciliation have important effects on economic activity, exceeding the financing costs.
Original languageAmerican English
Pages (from-to)543-582
Number of pages40
JournalTrimestre Economico
Volume85
Issue number339
DOIs
StatePublished - 1 Jul 2018
Externally publishedYes

Keywords

  • Families in macroeconomics
  • Family life
  • Labor participation
  • Reconciling work

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